How to ensure in a will that a co-op does not go towards Medicaid for co-owner who has been in a long-term care facility for years?

Question

My relative jointly owns a co-op with her mother who has dementia, is on Medicaid, and has been in a long-term care facility for about a decade already.  My relative has power of attorney for her mother.  My relative asked me how she could ensure that in the unlikely event that she predeceases her mother, the mother's share doesn't end up going all to Medicaid.

Can the co-op reconvey the stock certificate just to my relative since her mother has no capacity to make any decisions?  If so, that--combined with my relative creating a will--would seem to be an easy answer.

My relative has no spouse, siblings, or father, so if she died intestate, her mother would receive everything.

Thanks for your responses.

? · Accepted Answer

You can't.  Any transfers within 5 yrs. are treated as if they never happened for Medicaid purposes.  As long as your relative continues to live in the home, Medicaid can't touch it.  If she should pre-decease her mother, the facility will have the right to claim the home for reimbursement.  She should consult an attorney that deals with long term care and Medicaid issues to see if there is anything that might work.

Anonymous · Answer

It's too late.  The time to do this, is five years before the death of the co-owner receiving Medicaid.   You can try now, to transfer the co-op totally out of the name of the person on medicaid, but if they don't live at least another five years, Medicaid can still come and take the co-op from the new owner.

Anonymous · Answer

your for the life of me cannot when you apply for food stamps,  medicaid and cash 
 
 assistance you sign a paper stating 
 if you ever come into any money you shall reimburse them...

Anonymous · Answer

spend the money on an attorney who specializes in this area...  this a complex area and doing it wrong puts those assets at risk and there's no do over past a certain point...

Anonymous · Answer

gf

? · Answer

Cannot transfer now...too late.  Medicaid cannot get her half, as long as she actually has rights to half of the property.

Hire an estate attorney.  One who represents themselves in court has a fool for a client.

Anonymous · Answer

Your can't when you apply for food stamps,  medicaid and cash

assistance you sign a paper stating
 if you ever come into any money you will reimburse them.

tro · Answer

that's called a will and you put your affairs in the hands of a fiduciary who will settle your affairs
if your mother's care is paid by SS, any assets she has will go to that agency when she dies if her current benefit does not provide full coverage

Who · Answer

Why are YOU asking and not your "relative"?

IF she has the brains to set up the co-op and power of attorney then she can think and act for herself

coraann · Answer

If the mother was left, any assets she would have, would by law be used to pay for
her care.

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How to ensure in a will that a co-op does not go towards Medicaid for co-owner who has been in a long-term care facility for years?

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