Real Estate and Medicaid

[HSeldon]

What is the name of your state (only U.S. law)? Pennsylvania

I recently purchased a house and moved my parents so they could be closer to me and I had hoped to defray some of my expenses on fixing the old house up to sell it after the sale. Unfortunately, it has been on the market for longer than expected and since I will need to apply for medicaid for them soon I am afraid that medicaid will take everything, leaving me with the bill. Any suggestions on how to protect my investment in the old house? How about if I purchase their old home?

HS

 

[seniorjudge]

Who owns the land?

 

[HSeldon]

My parents own the old house that is on the market and that is the source of my concern.

HSeldon

 

[seniorjudge]

My parents own the old house that is on the market and that is the source of my concern.

HSeldon

I am not really sure of the procedure, but somewhere along the line, the house will have to be sold and the proceeds used to pay their bills.

Have you discussed this with the government bureaucrats?

 

[HSeldon]

I am not really sure of the procedure, but somewhere along the line, the house will have to be sold and the proceeds used to pay their bills.

Have you discussed this with the government bureaucrats?

On the first point, agreed, however it has been on the market since earlier this year with no action. It's a difficult real estate market. Once the house is sold, we can pay off the remaining mortgage and I can be reimbursed for my expenses. However, since the payments from my parents will be to me, and they are considerable (>$50K), is it likely the authorities see this payment as an asset transfer and disallow medicaid for that amount? What can I do to protect my investment if this is likely?

On the second point, not yet. So you think it will be useful at this stage?

HSeldon

 

[seniorjudge]

What do you have in writing to show that your folks owe you money?

 

[HSeldon]

What do you have in writing to show that your folks owe you money?

I have three types of expenses related to them. First, the work done on the house to get it ready for sale - painting, floor refinishing, etc. I have receipts for all of that. Second, for a while I have given them money to pay for the mortgage on the house. I have bank transactions that show that I gave them money and then receipts for when they paid the mortgage. The bank statements will show the trail. Third, I paid for their move from the old house to the new one. I have receipts for that as well.

HSeldon