Transferring real property between relatives?

Question

I would like to transfer my mother's house into my name, would it be better to use a grant deed, a trust transfer or a joint tenancy? My mother is going to need skilled nursing care in the future and her house is her only asset, the cost of care will eat up her estate in no time, but if she has no assets then she will be completely covered by Medicare or Medi-Cal.

Anonymous · Accepted Answer

Doesn't matter what you use. There is a look back period of about five years to catch people trying to cheat Medicare by transferring assets. So transfer using any method you want, they will still catch you.

Kini · Answer

Well, I dont know how to transfer the deed but I do know that you'd better do it before the look-back period when Mom goes into skilled nursing and applies for Medi-Cal. It is irrelevant that you are related. That is how far back Medi-Cal goes to search for disposed of assets in order to qualify for Medi-Cal. They dont take action until she passes away, and then it is only to levy the estate to recover only what they paid out for her nursing care and that is only if she is over 55 at the time she gets on Medi-Cal. She is allowed $900 a month Social Security which will go to pay part of the cost of nursing care. She is allowed $2000 in assets with some exemptions like a burial plan or term life insurance. Your county worker can give you the list. 

The current look back period for asset transfers for Medi-Cal is 30 months.  However, the Deficit Reduction Act of 2005 changed the look back period to 5 years, which will soon be implemented in California (see link here)

Anonymous · Answer

The look back period for Medi-Cal is actually 30 months.  Most other states it is 60 months.  Is the house in a trust right now?  You would do well to contact an estate attorney for help and advice.  I have my properties in a land trust with several family members as joint beneficiaries.  
If your mother is living in the house and will stay in it or return to it during or after the need for skilled nursing care, her home will be exempt and not counted amongst her assets in determining her Medi-Cal eligibility.  When she passes away, that is when the state can file a claim against her estate to recover costs spent on her care.

Transferring real property between relatives?

3 Answers