Medicaid spend down on a home with lifetime interest?

[crazysweetguy]

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

My mother went to eldercare. My father is still residing in the home. They both have lifetime interest in the home for 15 years with my name as owner. Can my father use his savings towards fixing up the home and working on it to satisfy the spend down requirements of Medicaid? Will this result in medicaid trying to take the home even though they only have lifetime interest if he were to put money into the home to satisfy the spend down requirement?

 

[FlyingRon]

If it's been 15 years, there shouldn't be any problem with the transfer of the home to you.

Spending money to maintain the house (which is a non-countable asset) is usually OK.

However, there are lots of things going on here so I'd recommend sitting down with an elder law person. You can get detailed advice for your situation as well as getting certain documents in order now why the parents are still in possession of their faculties: wills, trusts, advance medical directives, general and medical powers of attorney. I can't tell you how lucky I was to get this straight when my mother in law went into extended care (Alzheimers). The fact we got this done early made things that followed later much easier (even though there were no assets to speak of). Getting the other allowable things (prepaying funeral expenses) would also be a good idea.

 

[commentator]

I am saying No. Your parents do not own the house. You do. Therefore it does not count as an asset, and it was transferred to you years ago. The 'lifetime estate' issue shouldn't be a factor. Your father is living rent free in a house you own. If your father uses his money to do repairs and work on the house and thus brings his income down to where it keeps little enough in their bank accounts for a spend down, I don't see how this would be any different than spending the money to buy something else or repair something else. Why would it cause them to have a claim on the house when they don't? Usually the Medicaid case workers will be glad to answer questions of this type.

 

[FlyingRon]

I am saying No. Your parents do not own the house. You do. Therefore it does not count as an asset, and it was transferred to you years ago. The 'lifetime estate' issue shouldn't be a factor. Your father is living rent free in a house you own. If your father uses his money to do repairs and work on the house and thus brings his income down to where it keeps little enough in their bank accounts for a spend down, I don't see how this would be any different than spending the money to buy something else or repair something else. Why would it cause them to have a claim on the house when they don't? Usually the Medicaid case workers will be glad to answer questions of this type.

I don't agree at all. If this is a life estate, he is not living in a home "rent free," he is exercising a property benefit he has by right. Part of that is to maintain the house (else he could be sued for waste). Medicaid will NOT see this as improper. While I encourage the poster to have his father seek proper counsel, I strongly believe he not only CAN but MUST maintain the property (maintenance, taxes, etc...).

 

[crazysweetguy]

A concern I had was if they would try to do an estate recovery on home if money is spent on working on the home once he passes away. I may need to spend some money on the home as well if he don't have enough.

 

[FlyingRon]

A concern I had was if they would try to do an estate recovery on home if money is spent on working on the home once he passes away. I may need to spend some money on the home as well if he don't have enough.

Again, if the property was deeded to you with your parents retaining a life estate 15 years ago, it should not be an issue. They can't take your property and it appears that the transfer was sufficiently long ago to not disqualify mom for coverage.

However, again I recommend you get dad (and perhaps mom if she's able) in front of an attorney (in fact many will travel to them as long as they are mentally competent).

 

[commentator]

And again I reiterate. Your caseworker who is working with them on the Medicaid spend down will be glad to help you with such questions. And remember, they're not collecting money for their own benefit. They would not get paid more if the government takes your /your parents' house. They're helping you and your parents negotiate the Medicaid system, and most of them will be very able to tell you how it works, will have seen this situation many times before, and will not require you to come in fully versed in the process.