Protecting the Home Property When You Enter a Nursing Home

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When someone enters a nursing home, it is likely that they own both exempt assets and countable resources. The countable resources must be consumed down to a certain limit ($2,000 for a single person) prior to Long Term Care Medicaid eligibility. Exempt assets are not counted for purposes of initial Medicaid eligibility. The home is an exempt asset. So, it's important to understand the Medicaid definition of the home, under what circumstances you can transfer the home out of your name, and whether Medicaid will have Estate Recovery rights when you die.
In general, the home is described as property in which someone has an ownership interest and that serves as his or her principal
place of residence. Home property includes: the house or lot which is the usual residence, all contiguous property, and any other buildings on the home property. Property is contiguous to the residence if it is touching the residential property (even corner to corner) and is not separated by property owned by others. Property separated by a public right of way, such as a road, is considered contiguous.
If a person, in 2018, has more than $572,000 of equity in their home, then the excess in not exempt. If they own a home out of state, then, generally, it is not exempt. And if you list your home for sale, then it is no longer an exempt asset.
In certain circumstances, one can transfer their home to another person prior to applying for Medicaid, without incurring penalties. This is important because if you take the home out of your estate, then Medicaid will not have estate recovery rights when you die.
You can transfer your home to a child who is blind or permanently and totally disabled as defined by SSI at the time of the transfer. You can also transfer your home to a child, without penalty, if the child is age 21 or over, is not blind or permanently and totally disabled, was residing in the home for at least two years
immediately before the date the individual became institutionalized, and provided care to the individual allowing the individual to reside at home, rather than in an institution.
A note exists to the above exception that provides:
The exception must be documented by written statement
from physician indicating his/her knowledge that during the
preceding two years, the individual’s child was present in the
home as the primary care giver and if not for the care
provided by the child the individual would have required care in an institution (nursing home).
Finally, if the home is in your name when you die, it will be part of your Succession and thus, subject to Estate Recovery rights. People often thing the home is "home-free" because it is an exempt asset. However, after a Medicaid recipient dies, if the home is in the recipient's Succession, then Medicaid can seek reimbursement from the Succession, forcing the Succession to sell the home to pay the Succession debt.
This post is for informational purposes only and does not provide legal advice. Please do not act or refrain from acting based on anything you read on this site. Using this site or communicating with Rabalais Estate Planning, LLC, through this site does not form an attorney/client relationship.
Paul Rabalais
Estate Planning Attorney
www.RabalaisEstatePlanning.com
Phone: [phone]

[@Omikoshi78]

Healthcare in the US is broken, till then I have no shame leveraging every legal maneuver available to avoid going bankrupt. I only wish I lived in Louisiana so I can hire this guy.

[@blackdiamond5888]

It sad that people that owns nothing gets off free. It's the people that have are the ones that go to pay. Wow.

[@desamania]

What if the child is a co owner of the home?

[@socaluv64]

Can a home be transferred to a stepchild who provided care for up to 2 years prior to full time nursing care admission?

[@waynecmontgomery]

LOL great joke! I am going to use that joke at the bar.

[@cherylcampbell7495]

I’m a caregiver and retirement homes are nice in Scottsdale, AZ. And Carlsbad, Ca. Worked in both areas. I like them because your not necessarily lonely. Shame more children aren’t involved with mom, dad, grandma. Most are very proud of their children then the others complained that they never see ya.😂

[@juliovaldez6834]

good video

[@mutleysnicker]

Hello, Great information on your vids! I've watched them all.... I've been wondering about Divorce ( To save assets that is!!! lol) So Fred and Wilma are in their 70's--They have well over a 2 million in assets but Fred is not doing well in his health and will need be be put in a nursing home. They have a little time to get things right to protect some assets... My question is can they get a divorce having the majority (If not all) going to Wilma to save all they have worked for before Fred has to go to a Nursing home? Thx

[@paulwarren796]

I WILL NEVER WANT IN A DAMN NURSING HOME . I WILL WNGT IN HOME CARE IN MY OWN PLACE OF DWELLING . PWW

[@yolandadorta8064]

Great information. What if a person sells home and uses money to go to assisted living but money run s out after 2 years and needs to go to nursing home? Can they still apply for Medicaid?

[@barbelvan5499]

Good question! This can certainly get complicated with : if, only if, not until, and or but. One thing and the first thing usually required is that you be physically disabled to a point where you are considered to require high level of care, like really dependent!

[@SandfordSmythe]

There shouldn't be a problem if the money was used for health care issues.

[@TheJosa007]

I wouldn't put none of the money in the coffin. Personal check eh? awesome !! How would anybody know how long mi son has been in my home, What is the 5 . year penalty? How much? Thank you very much

[@symranhedderman7301]

Garden centres in the Manchester area

[@marjorieyarnell1926]

What about a senior ex wife (72) who’s income is alimony from husbands pension and SS and is caretaker ( POA) of elderly husband (88) and he has a stroke and needs to go into a long term facility which would mean Medicaid!

[@DLFfitness1]

This is particularly painful for those who worship money, and things. People end up in nursing homes, because they are no longer able to care for themselves. If you have money you simply pay the bill. If you need assistance, you will have to qualify. Hospital stay, Rehab, Nursing home…. There is nothing mysterious about the process.

[@hankwilliam2481]

What's you own ends up owning you

[@dr0463]

i know this is from 2018, but what state is he speaking of?

[@Wiszer123]

Louisiana

[@emeraldkimble7602]

My bank account was in brothers name and social security number welfare had no record of me with online connections I don’t qualify anyway

[@carlahooker3492]

What uhh r child refinanced home thAt is titled in child's name with mother having life estate

[@georget9066]

CAN U PONT ME TO SOME ONE IN NYSTATE THANK U

[@americasestateplanninglawy1946]

Don’t have any colleagues there. Any NY attorneys out there who can help?

[@rockovahsacralonte570]

Are Medicaid rules different from Medicare rules?

[@KCFlyer2]

Medicare doesn't cover nursing homes.

[@SandfordSmythe]

Medicare pays for rehabilitation and very skilled nursing care for a limited time, with increasing co-pays. Doesn't depend on assests.

[@paularies3282]

​@@SandfordSmythethey won't if you are released from the hospital as "observation" and not admitted. They just f over my father who was admitted and was NOT ready to go home. Sent him home on aspirin and then readmitted him less than 24 hours later as observation so now it's ALLLLLL out of pocket for Rehabilitation. All rules went back to pre-covid. I hate this healthLESS care system.

[@SandfordSmythe]

@paularies3282 Yes, inpatient stay is needed.I would think the hospital staff would know. Part of the stay is to document what rehab would be needed. The system is f...and it is often just a flip of a coin whether you are f...ed

[@SandfordSmythe]

@paularies3282 I hate that. I could see medical Residents doing that. I'm in a bad mood from a similar situation, so Residents, please forgive me. Medicare keeps track of such inappropriate discharges and can cut the hospital's payments rates.

[@motowngirl5891]

If you have no money is the only way you can quality for Medicaid

[@SandfordSmythe]

It's more complicated then that.

[@glendacastillo6504]

It's for welfare people. If you work and pay taxes, you don't get help.

[@SandfordSmythe]

​@@glendacastillo6504Until you need it.

[@junebug8882]

Explain to me why buy a house when 30 to 40 years you sell it again because you’re elderly? Who of us can live double the life expand 200 years or better in the future🎉🎉🎉🎉2099 from 2024.. What 💪😃

[@janetsavona3542]

Don't theses politicians have elderly parents that need help Why don't they lessen the criteria

[@americasestateplanninglawy1946]

Good question JS 🤔

[@janetsavona3542]

@@americasestateplanninglawy1946 It's true Why must they be entitled to your whole life savings when you enter a facility for the last 5 years The look back period should be two years

[@SandfordSmythe]

There is not a socialist mood in the US to set this up and raise the huge taxes needed. No one wants to pay for someone else's parents, so the family can keep the money for themselves. If someone has money, they should pay for it.

[@jdemarco]

Because most of them are rich and don't have to worry about money.

[@jdemarco]

@@SandfordSmythe Give me a break. It's ok for our taxes to pay for free health care for illegals who have never put into the system?

[@mimie2872]

PLEASE HELP ME, I AM A SENIOR WHO IS UNWILLINGLY LIVING IN NURSING HOME RIVERSIDE PLACE IN WASHINGTON STATE. I NEED YOUR HELP TO GET OUT OF HERE, MY NAME ISEIDA PEDERSON & MY DAUGHTER : PAMELA MAY PUT ME HERE WITHOUT MY CONSENT AND SHE HAS KEPT ME WITHOUT AN IDENTITI AND SHE IS USING ALL MY MONEY VIA MY BAANK ACCOUNT AND MY HOME WITHOUT MY PERMISSION...

[@saulg195]

How are you now?

[@motowngirl5891]

There is no such thing as protecting assests

[@sinebar]

Good reasons to never go into a nursing home. I'd rather die in my own home than to have some freaking nursing home end up taking.

[@johnserrano8683]

Exactly! Stage 4

[@janetsavona3542]

Less is better

[@Cathy-xi8cb]

They don't take the house from your spouse. No spouse? Sell the house to pay for your care, because you should pay your way if you have funds. That is what responsible people do.

[@EfilistGoines]

Responsible people don't have kids. Parents can't protect their children from cancer or an auto accident. You never ask to be born and you never created the system you live under. Besides they don't allow assisted "s-word" that would actually protect the elderly from going into the nursing homes in the first place and dying a slow death. Plus while living other people have to suffer due to your existence. A human doesn't exist without harming others, so the least the human race can do is try to make up for the death that they have handed towards their own children without their child's consent. What do you think about that cup of tea?