lildeb0862 Asked November 2011
What will happen financially when my mom goes on Medicaid after we cashed in one of her CD's she gave us?
Follow
Share
Moms house will be in my husbands name in 22 days. Will we have to repay the cd that she transferrred to us?
This question has been closed for answers. Ask a New Question.
2 Answers
This question has been closed for answers. Ask a New Question.
Popular Questions
Related Questions
- How can Medicaid take into consideration what has been done with money the last few years if you did not know you were even going to need Medicaid?
- Can a person receive Medicare benefits if they owe Social Security for over payment?
- As my mother's POA, do I still need that other document to speak to Medicare on my Mother's behalf?
- How do I transfer Mom to another nursing home if she is already on Medicaid?
Ask a Question
As stated above, gifts made without fair market compensation within five years of a Medicaid application may be brought back into the applicant's "estate" for Medicaid eligibility purposes. With respect to the CD, this may cause an "ineligibility penalty" based on the value of the transfer.
This can be cured by returning the money to mom and then using a legal method to safely transfer the asset back to you. The purpose of doing so will not be to benefit you but, rather, so mom will have additional funds to support herself while receiving public benefits.
Federal law provides Medicaid asset protection for the primary or "homestead" residence if there is "intent to return" by the applicant. Some states presume this and the home is automatically protected. Others do not presume this and will require evidence that intent to return is viable.
Either way, transferring the home to you husband is a big mistake because of the transfer rules mentioned above.
Alternative ways to protect the home include (again, state variations apply):
Listing it for sale (it becomes an "unavailable asset")
Renting it (net income must go to cost of care)
Also, if you lived in the home for two years or more as mom's primary caregiver, the home can be transferred to you with no penalty.
Lastly, if Medicaid in your state allows her to keep the home, be mindful of Medicaid estate recover at her demise. All states are required to seek recovery of Medicaid costs at a recipient's demise. However some will only attempt to recover from probate assets. If this is the case in your state, there are methods to title the property and avoid probate.
Good luck!
Take care,
Carol