Real estate sold to pay for nursing home care?

Question

A friends mother is 67 paralyzed, and is probably going to have to be placed in a nursing home. This is in Pa. She receives Medicare, and Medicaid. She owns her home, but has no other assets. Her daughter has lived in the house with her mother for the past 24 years. They have been told that in order to pay for the nursing home care the State of Pa. will force the sell of the property, and seize the money. That will effectively put the daughter, a good friend of mine'on the street'. The daughter is not listed on the deed to the house, but has paid for half the upkeep, remodeling, etc. all these years. They have been told putting the house in the daughters name at this late stage, would be fruitless, and maybe even fraud! Question; does the daughter have any recourse as to not losing her home?

Wayne Z · Accepted Answer

Probably not.

There is a 60 month look-back period when someone needs Medicaid.  Anything that is transferred out of their name within those 60 months is still considered theirs.

Your friend may be able to purchase the house at a reduced price but she probably won't be able just to take it.

BBG · Answer

I cannot say this clearly enough:

IT IS NOT THE DAUGHTER'S HOME.

She is not the owner.  She has no recourse.

The government is not stealing her home.  Her landlord is selling the property she has been living in.  Two very different things.

Your friend is an adult.  All these years she had the choice of making smart or dumb financial decisions.  She made dumb ones (putting her money into a house she didn't own).

People, you cannot neglect BASIC estate planning and then cry heigh-ho when stuff like this happens.

? · Answer

The daughter has to find her own place to live, or stay home and take care of her mother if she has nursing qualifications. Nursing homes cost $7000 a month. Her mother's Social Security check will go to pay for care after the profits from the home sale have been used. Nursing care is not free you know. If a person has assets above $2000 they must liquidate those assets to pay for some of the care. If you are on Medicaid you are allowed to own a home if it is your primary residence. Once she goes into nursing home, that will be her primary residence and she cannot also own a home because that is an asset which can be liquidated to pay her bills.

If your friend wants her mother to put the deed in someone else's name in order to qualify for Medicaid, they have to do that 3 to 5 years (depending on state) before going into nursing care. That is so people dont sell their assets in order to qualify for Medicaid.

R P · Answer

It may be the daughter's "home," but it is not and never has been her property. She has no ownership in it whatsoever and cannot stop the sale of the home to pay for her mother's care.

realtor.sailor · Answer

Unless she can find a way to reimburse Medicare and Medicaid, there's northing she can do.  Thefederal government has the right to be reimbursed for medical care.

Landlord · Answer

They are correct, she is trying to defraud the state, which is a serious crime.

The daughter can get out her check book and pay her mothers bills.

If the mothers bills can not be paid then her assets have to be sold.    How the hell can you justify not paying them when money is in fact available?    Well, other then the daughter being greedy as hell.

She is a grown up, she needs to acquire her own home.

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Real estate sold to pay for nursing home care?

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