They went into a nursing home. We took care of my neighbors, both a man and wife. The man and wife wanted the home to go to us for payment of all the times we helped them for the 20+ years we took care of them both. He signed the house over about 6 months before he passed.The widow lived there until about 8 months ago before it became too much to where we couldnt take care of her anymore. She went into a nursing home and I'm afraid of them coming after me due to medicaid etc... I am in absolutely NO relation at all to either of the previous owners. We were just nice people who helped them out. They had children, but the children didn't give a crap about them at all and never did anything to help them once. That's a huge reason we took care of them. So am I liable at all to lose my home? THANKS
Did they both go into a NH and each applied for Medicaid within 5 years of your getting the gifted property?
Was the property just owned by him so he could gift outright without the wife having any ownership - it was separate property legally in your state?
Was it gifted to you and then you properly recorded it on the courthouse so that your name is on the property in the county assessor's office?
What was the situation in how the wife stayed in the house - like was there a usufruct for her for her lifetime in the gifting of property agreement. It might not read as a "usufruct" but some other term that implies that. Or was there an oral understanding of her use?
OR was it the case, that he never went into a NH & never applied for Medicaid and gifted you the property and then he died?
Who did their (or just her) NH for Medicaid application(s)?
What is the situation regarding their children? If you don't have their names, then you need to get them as the attorney will need this. It will cut down the paralegal costs.
Did he have a will & what happened with it?. Like was probate done.
The sequencing of ownership and who owned what and when Medicaid application was done is going to be the key to if there will be a transfer penalty issue with the lady on getting approved for Medicaid and if the house is subject to MERP. The fact that you are not family is not gonna matter, it that you benefitted that matters. Do you know if she has been approved for Medicaid or is she still "medicaid pending"?
MERP is Medicaid Estate Recovery Program and is required by the states in order to get federal Medicaid $. Each state runs MERP differently as MERP is really interdependent on state laws on death & probate. Probate is how a MERP claim or lein is done. If it's a claim or lien depends on your state law. Like TX is a level of claim probate state & MERP is a class 7 claim. So Class 1 -6 get paid first and foremost, so MERP doesn't happen as much (still happens though). Other states where it's a lien can be more aggressive with MERP as the law enables this. So really you need good legal to evaluate your situation. Good luck.