Mother In Law on Medicare, what will happen with her home

[Hollyworld]

My Mother In Law is in bad health and is on Medicare. She owes a lot in medical bills (she spent 3 months in the hospital and countless other hospital stays.) She does not own her home and still owes approx. $40,000. (1) In the event of her passing, what will happen to the home if she wills it to her children but still owes on it? (2) Can the children have the option to take over the $40,000 or will the home go the the state to sell to pay her medicare and other bills? (3) Can we buy the home from her now to avoid problems when she passes away and if so, do we have to buy it at market value or can she sell it for what she owes on it?? This is in South Carolina.

 

[I AM ALWAYS LIABLE]

My Mother In Law is in bad health and is on Medicare. She owes a lot in medical bills (she spent 3 months in the hospital and countless other hospital stays.) She does not own her home and still owes approx. $40,000. (1) In the event of her passing, what will happen to the home if she wills it to her children but still owes on it? (2) Can the children have the option to take over the $40,000 or will the home go the the state to sell to pay her medicare and other bills? (3) Can we buy the home from her now to avoid problems when she passes away and if so, do we have to buy it at market value or can she sell it for what she owes on it?? This is in South Carolina.

My response:

Medicaid/Medicare will place a lien on the home. Therefore, when the home is sold (and it will be upon her death) the Agencies will take their money. If there is a lien, you can buy the home, but subject to the lien; i.e., the lien will have to be paid upon her death, or the transfer of, or the sale of, the home.

IAAL