URGENT: Need Help with Medicaid/Housing Owndership Laws

[FamilyInNeed]

What is the name of your state (LA)?

29 years ago my parents moved into our home. They had a verbal agreement to pay what they could each month to my grandparents in order to purchase the home, but after about a year, they fell on financial troubles and quit making payments. My grandparents have never threatened us about leaving or anything like that. They haven't lived here since we moved in and quit asking for payments probably right after I was born, 27 years ago. Well, they never transferred ownership officially to us. So, my grandmother's name is still on the deed. Well, she also owns her own home separate from ours. She decided months ago to stay in a nursing home because she felt safer there. Well, now she is running out of money and is going to have to go on Medicaid because she is running out of money. I have been informed by my aunt's that when she applies, Medicaid will take our home unless we purchase it from her. This is because they go back 5 years or something like that on property transfers, so they say she cannot just transfer it to us under the estimated house value. I cannot take out a loan that large or I will never be able to buy my own home in a few years. My dad has bad credit though and cannot get a loan because of medical bills my mom left us when she passed. We don't know what to do and I'm searching for answers. It's it true that even though we've lived here rent free for 28 or 29 years, we would still lose the house and not be considered owners, that we could just be kicked out, even though we have not been required to pay any type of rent in over 25 years? Do you know any other options? I need help desperately. I'm so stressed and I thought this site may could help. I was hoping you could help me figure out what to do. We don't have much time before she applies, weeks actually. Thank you for any help you can offer.

 

[ShyCat]

It's it true that even though we've lived here rent free for 28 or 29 years, we would still lose the house and not be considered owners, that we could just be kicked out, even though we have not been required to pay any type of rent in over 25 years?

Living rent free for any number of years does not give you ownership of your grandmother's property. Her property is rightfully hers to use for her own benefit (in this case, paying for her needed care). You must face the fact that your grandmother can no longer afford to indulge a bunch of freeloading relatives.

Do you know any other options?

If you cannot buy her house, then you'll either have to find a new place to live or hope the new owners of the home will allow you to pay rent in order to stay (though I wouldn't count on it).

 

[commentator]

If you were to come up with the money and buy her house at this point, that money would go straight to the nursing home to pay for her care, and it would preclude her from qualifying for Medicaid.

Your aunts don't know what they're talking about if they're saying you should buy the house right now. Medicaid would not come in and pick it up and take it away before they begun paying for your grandmother's care. I'd stay where I was for the time being, looking around for somewhere else to go if necessary. But it's far too late to change this situation by going out and buying the house at this point even if you could.

But with financing the care of elderly people, you never know. This situation may last years, and it may be over tomorrow. You can bet that when your grandmother passes, you're out of this place unless you are willing and able to purchase it from the other family members anyhow, so I'd be thinking on that right now.

 

[STEPHAN]

quit asking for payments probably right after I was born, 27 years ago.

You and your parents got a free ride for 27 years. That will soon be over. Time to grow up and take responsibility.

 

[I'mTheFather]

If you were to come up with the money and buy her house at this point, that money would go straight to the nursing home to pay for her care, and it would preclude her from qualifying for Medicaid.

Your aunts don't know what they're talking about if they're saying you should buy the house right now. Medicaid would not come in and pick it up and take it away before they begun paying for your grandmother's care. I'd stay where I was for the time being, looking around for somewhere else to go if necessary. But it's far too late to change this situation by going out and buying the house at this point even if you could.

But with financing the care of elderly people, you never know. This situation may last years, and it may be over tomorrow. You can bet that when your grandmother passes, you're out of this place unless you are willing and able to purchase it from the other family members anyhow, so I'd be thinking on that right now.

The grandmother owns 2 houses, and the OP's residence is not the grandmother's residence. It will be considered an asset for Medicaid eligibility.

Why wouldn't OP be able to buy the house now if willing to pay fair market value?



One other option for OP and family is to move into the grandmother's residence.