Need help(protect house from MedicaidAssetRecovery

[serincho]

What is the name of your state (only U.S. law)? <-- I'm in Washington state:

My house is owned by 4 people (myself, wife, 1st child & 2nd child).
as Joint Tenant with rights of survivorship. Each person holds 25% interest.

My wife and myself are getting weaker, we'll end up entering nursing home in about 7-8 years,
I'm spending $3000 for a home care giver service, and my cash will run out in about 7-8 years,
then we're thinking about applying for medicaid to get nursing home cost covered, after using up all my cash .


[Question1] What type of property ownership will protect my house from Medicaid Estate Recovery? I heard that Irrevocable trust is one way to protect from Medicaid estate recovery.
Is there different type of ownership? (ex. Tenent in common is not exempt).

[Question2] Is there any specific Irrevocable trust type that is just right for the medicaid estate recovery? I'm not sure if there's only 1 kind of irrevocable trust or more.

 

[FlyingRon]

Note that an irrevocable trust or even outright giving the property away will stave off asset recovery but it most likely will also invalidate your eligibility for those services.
In fact, it's unclear how your children came to be joint owners of the property now but in doing so you've screwed which ever of you is the surviving spouse to a big exemption against them and you may have already jeopardized your eligibility in addition to creating tax issues for you and your kids.

Stop guessing and get to a proper elder law/estate lawyer. While you're at it you'd likely want to get proper trusts and wills in place as well as perhaps powers of attorney (medical and general) and advanced medical directives together while you are still competent to do so.

 

[tranquility]

Note that an irrevocable trust or even outright giving the property away will stave off asset recovery but it most likely will also invalidate your eligibility for those services.
In fact, it's unclear how your children came to be joint owners of the property now but in doing so you've screwed which ever of you is the surviving spouse to a big exemption against them and you may have already jeopardized your eligibility in addition to creating tax issues for you and your kids.

Stop guessing and get to a proper elder law/estate lawyer. While you're at it you'd likely want to get proper trusts and wills in place as well as perhaps powers of attorney (medical and general) and advanced medical directives together while you are still competent to do so.

It doesn't seem the OP is looking to qualify today, but in 7-8 years after the rest of his assets are spent down. Acting now might put everything outside of the lookback period and is a core of eldercare planning.

 

[serincho]

Above quote is correct

It doesn't seem the OP is looking to qualify today, but in 7-8 years after the rest of his assets are spent down. Acting now might put everything outside of the lookback period and is a core of eldercare planning.

Yes, above quote is correct, I have some cash that can last for 7-8 years.
The only asset I want to protect is my house. so I'm trying to retitle the deed right now (because there's a 5 year look back period).
So after 7-8 years, my cash is spent down, and my house was retitled 7-8 years ago, then we can safely apply for Medicaid to cover the nursing home care.

 

[FlyingRon]

I still recommend an attorney. Setting up an irrevocable trust that is guaranteed to stop asset recovery and also not cause problems for the eventual beneficiaries isn't something we're gong to be able to do over the internet.

 

[commentator]

I love the way these people are planning to outlive their assets! They must have an awesome crystal ball! But setting up things now to keep the government from getting their house in a situation which has not happened yet and may never happen is still a good idea. But act now if you want to make sure you will be able to leave the house to the co-owners. You have so little guarantee of "seven or eight more years." Get rid of the house, legally right now, use up some of those assets you say you have now to get a good attorney and take care of it. Don't wait two or three years (five year look back) until your imaginary "seven or eight years from now" becomes an issue. That's cutting it a little too thin! You could have a stroke tomorrow or a fall and end up needing long term care, no matter how old you are or what your health is now. But spend the money on that good advice from that good attorney right now and you shouldn't have to worry about it any more.

 

[ShyCat]

And don't forget to work up a good rant about how taxes are too high while arranging things to live off taxpayer-funded welfare (aka Medicaid). I wouldn't wish a Medicaid-funded nursing home on anyone... well, almost anyone.

 

[commentator]

Yes, and right when you need it, there may not be a place in any Medicaid accepting nursing home that will have you. But really, I have seen older people in their 80's who were dallying around still thinking that "someday" they'd set up a trust or start divesting themselves of their assets, counting on that they would need long term care, which they expect to be covered by the government, and still THEY were complaining about how the evil old government might take away Junior's inheritance of their house or whatever. I have also seen parents who gave their children the assets on paper long before they ever were in the situation of needing to qualify for Medicaid. And then they didn't ever have it happen. Why not prepare early for the worst case scenario, which is that you outlive all your assets in very bad health, but hope for the best without worry?

 

[commentator]

Yes, and right when you need it, there may not be a place in any Medicaid accepting nursing home that will have you. But really, I have seen older people in their 80's who were dallying around still thinking that "someday" they'd set up a trust or start divesting themselves of their assets, counting on that they would need long term care, which they expect to be covered by the government, and still THEY were complaining about how the evil old government might take away Junior's inheritance of their house or whatever. I have also seen parents who gave their children the assets on paper long before they ever were in the situation of needing to qualify for Medicaid. And then they didn't ever have it happen. Why not prepare early for the worst case scenario, which is that you outlive all your assets in very bad health, but hope for the best without worry?