Dad's in nursing home on Medicaid. Mom is ill at home. I have heard that if someone moves into the family home to tend someone, that after 2 years of caregiving, the home can go to the caregiver and no to repay the medicaid bill. The home is worth approximately $150,000. They live in PA.
Sorry to be so blunt.
Now, the answer to your question is to call a lawyer to find out what the laws are in your state.
I will point out that caregiving with the thought that there will be a reward after the recipient's death is always a gamble. Grandma may get run over by a beer truck after 20 months. She may need care beyond what can reasonably be provided in a private home. It is always much better if the compensation can be given as-we-go. But if this is a caregiving arrangement that makes sense in other ways, they might as well take advantage of any benefit available. That is why they need to see a lawyer.
You're right on consulting a lawyer, and that's one of the reasons I recommend it so frequently. These Medicaid issues can, or rather, are, so complicated.
Thanks again, and to the OP: I'm sorry for my inaccurate post and understanding of Medicaid priorities.
Before you take any firm steps, start with consulting an attorney who specializes in Elder Law. He or she can give you specific answers about the 2-year thing and also help you set things up so that they are most advantageous to the family and also strictly legal.
Is your daughter eager to care for Grandmother? What kind of care does she need? Caregiving is a huge undertaking and very hard work, especially emotionally. Is your daughter employed now? What would be the impact of an interruption to her career? Is she in a relationship?
There are lots of things to consider besides whether she would "earn" the right to inherit the house. But for that aspect of it, see an Elder Law specialist.
I sincerely appreciate your explanation - thanks very much!
I stand corrected - somewhat red faced and wrong!
Also the caregiving has to be full-time, so if daughter has a full-time job or school, then her caregiving would not be full time so no MERP exemption.