Revocable Living Trusts

[awl2005]

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

Elder sister wants mother to enter into a revocable living trust with her and mother. Mother is looking at nursing home care in next few months. Mom has nursing home insurance but it is only good for one year. Sister then wants her to transfer the entire property to her thru quit-claim deed. Then quit-claim from 1 sister to 3. She thinks this will protect the property from medicare look back if mother should need it in a year. We don't think it will. Mom's ultimate goal is to get back to her own home or an apartment in 6 months time. House is probably only worth $100,000 and she has a $30,000 home equity on it. (not paid off)

Can mother sell the house to one of the children for any amount of money? What happens to home equity if sister enters into revocable living trust with mother? What about quit-claim to other sisters? Can it be gifted and if so, then what happens to home equity?

Any thoughts on this? Will it do what elder sister thinks it will?
Thanks.What is the name of your state (only U.S. law)?

 

[anteater]

It's Medicaid, not Medicare.

The look-back period for disposing of assets is now 5 years when applying for Medicaid. Your sister's scheme runs a very good chance of disqualifying your mother.

 

[BlondiePB]

It's Medicaid, not Medicare.

The look-back period for disposing of assets is now 5 years when applying for Medicaid. Your sister's scheme runs a very good chance of disqualifying your mother.

And, the scheme is conversion/fraud.

 

[anteater]

And, the scheme is conversion/fraud.

I don't see anything criminal about it. After all, it is still her asset and apparently she is still competent. But mom is up the creek if she needs to apply for Medicaid.

Can mother sell the house to one of the children for any amount of money? What happens to home equity if sister enters into revocable living trust with mother? What about quit-claim to other sisters? Can it be gifted and if so, then what happens to home equity?

No.
No.
No.
No.

Unless Mom comes out of this with around $70,000 (fair market value of $100,000 less payoff of the $30,000 loan), she faces a disqualification period if she applies for Medicaid within 5 years of the transaction.

 

[BlondiePB]

Greedlings, Ya Think, Ant?

I don't see anything criminal about it. After all, it is still her asset and apparently she is still competent. But mom is up the creek if she needs to apply for Medicaid.



No.
No.
No.
No.

Unless Mom comes out of this with around $70,000 (fair market value of $100,000 less payoff of the $30,000 loan), she faces a disqualification period if she applies for Medicaid within 5 years of the transaction.

Competency isn't the issue with the conversion/fraud. It's the conversion of mom's assests to qualify for Medicaid. Actually, this is one of the worse schemes ever posted to qualify/dump assests I've ever seen posted here.

 

[anteater]

But I've never seen anyone criminally charged for shedding assets in a Medicaid shell game. Not even sure if there is a law on the books for it.

Medicaid says, "Sorry, we ain't payin'" And then the facility gets real nasty.

There's a greedling in every brood.

 

[BlondiePB]

But I've never seen anyone criminally charged for shedding assets in a Medicaid shell game. Not even sure if there is a law on the books for it.

Medicaid says, "Sorry, we ain't payin'" And then the facility gets real nasty.

There's a greedling in every brood.

Ant, my dear friend, come spend some time down here. Bring lots of Rum, you'll need it for the Gazpillira.

BTW, Gazpillira is a real annual event in Tampa. I'm not sure if I spelled it correctly, though.