Medicaid allows for this, and that's great news because I have health issues and I only have a part-time job. But do I become owner of the house? And if not, who helps pay for the house's upkeep and the taxes? I'm just wondering if this is going to become more of a burden on me than a blessing because I can't afford a $4,000 annual tax bill. Also, mom didn't make timely repairs on the house so there's tons of work that needs to be done. Am I getting myself more into a money pit than anything else?
Hugs 🤗
1) Your mother has not been approved for Medicaid yet.
2) From the sounds of it, application has not been done yet.
3) You mention a pension and SS as mom's sources of income.
Until the first 2 items have been addressed, the whole question about staying or moving is moot.
Depending on how much #3 tallies to, your mom may not even qualify for Medicaid.
In addition, I found the following:
https://www.elderlawanswers.com/medicaids-gift-to-children-who-help-parents-postpone-nursing-home-care-15117
Which states:
"...who lived in the house for at least two years prior to the applicant's entering a nursing home and who during that period provided care that allowed the applicant to avoid a nursing home stay."
***This could be another sticking point. If your mom didn't need NH care in that time frame, they can DENY this "benefit."***
AND
"Each state Medicaid agency has its own rules for proof that the child has lived with the parent and provided the necessary level of care, making it doubly important to consult with your attorney before making this (or any other) kind of transfer."
***Again, you'd need proof that you provided the "necessary level of care." WE can't determine what that is, only Medicaid can.***
Another issue to consider is that some NHs have minimal requirements for NH care. Just needing assistance with ADLs and/or dementia sometimes isn't enough. Would she need care? Sure, but often NHs are for those who need specialized nursing care, not just help with ADLs.
BUT, first and foremost, mom's eligibility for Medicaid needs to be addressed FIRST. If she is over the income limit and/or doesn't qualify for NH care, the whole issue being discussed here is irrelevant.
Initial consult with EC atty can help. Many often give an initial free consult (limited.) Mom's funds should cover any expenses, if possible. They may also be able to finagle a way around some of these "sticking" points.
Yes, this IS a complex situation and there are WAY too many caveats. See my most recent post for some of those....
This IS a situation where a consult with EC atty is advised. At a minimum, determine if mom is even eligible for Medicaid. Until that or something an atty can wrangle up, the rest is moot.
But, as I've noted, the cart is being considered before the horse is even out of the barn.
"...medically necessary care..."
If it isn't NH type care needed and/or provided during the 2 years, they can deny.
It doesn't appear that mom has been approved yet - no indication application for Medicaid has even been made.
Since mom has both a pension AND SS, she may be disqualified just on income alone. Need isn't the only deciding factor.
There are sticking points on the NEED for NH as well. Would mom qualify? We don't know (nor does OP) yet.
Consult is highly recommended. The atty may be able to work some "magic", but we certainly can't.
A lot of confusing/conflicting information has been provided by others, including me, but until everything is laid out legally, none of what we post, other than consulting expertise, is of a lot of use.
I would say that even IF mom qualifies and all other pieces fall into place, trying to own this home, low taxes or not, is going to be a huge challenge on $1k/month income. IF all repairs could be done by family or at the lowest cost possible, that will likely raise the taxes too, so damned if you do, damned if you don't! Repairs done before resolving ownership are also dicey. IF no transfer of ownership or guarantee Medicaid isn't going to step in and require repayment of NH costs after mom's passing, those repair costs will most likely be eaten by whoever pays them.
Too many IFs in this whole scenario.
You said you can't afford tax bills of $4,000 a year?
Can you find a place to rent for $350 a month?
I think not.
So, if you want to live there for free, you should be willing to pay the taxes.
As far as the upkeep goes, the money from mom's account should pay for it.
In the end the house will be divided up between you and your siblings.
There are many more expenses to upkeep of a house and property - utilities, maintenance, repairs, insurance, etc. This place is going to cost much more than $350/m.
"As far as the upkeep goes, the money from mom's account should pay for it."
Since they're talking Medicaid, there won't be any "mom's account." All mom's income goes to the facility, and anything above the Medicaid limit (often about 2k) has to be "spent down."
"In the end the house will be divided up between you and your siblings."
Not necessarily - Medicaid can put a lien on the house/property for the amount they paid for mom's care under Medicaid. If the amount Medicaid paid is less than the house sells for, then the remainder can be split. If it's more, they get nothing.
This is a money thing – with money, you have other accommodation options. Don’t start by thinking you have no other place to live. Do your best to work out the money – regular outgoings plus the cost of repairs or anything else that you would want to change. Find out the selling price of the house, now and if it was ‘fixed up’. Real estate people usually jump at the chance to talk to you about this. One person living in a sizable house isn’t really economic – could you charge for a house sharer, and would you want to?
How will finances be affected by mother’s cost of long term care? How long is it likely to be? Will her estate eventually be required to pay back Medicaid, even if there is no immediate pressure to sell? If so, will there be much left to recompense you for anything you have spent on the house? Most people who 'renovate' a house expect to get their money back on sale, but it may not work out that way with Medicaid involved.
When you can get your head around this, send what you have found out to your siblings, and have a meeting with them to work out what to do. The good thing about the offer is that you and they have time to think carefully.
One that specializes in Medicaid law ...hugs 🤗
You need to carefully go through the house and take note of things like plumbing fixtures that will need to be replaced within the next few years, wall or paint damage that would detract from a potential sale, out-dated or unreliable electrical outlets or lights, worn or damaged places in the flooring, counters, and cupboards. Basically, examine every foot of every surface and note everything that is not quite up to snuff. Then go outside and look at the roof, exterior walls, foundations, landscaping, driveway surfacing, etc. How old are the plumbing connections and the pipes going from the house to the public utilities? If they are more than 50 years old they will need replacing in the next 10 years. We had one house that needed this when it was only 40 years old, another didn't need it until it was 60 years old. That repair will eventually need to be done.
Take your lists and see what (if any) repairs you can do on your own. Then find a handyman who has a contractor's license (try CraigsList if nobody you know can recommend one). Ask for an estimate on the repairs. (Talk to and get bids from at least 2.) Have him/her break it out into groupings of most needed, could be delayed, and nice but not essential. Talk to your sibs about the costs of the delayed repairs. See if they are willing to help out so they can get more from the house when it is sold. This should give you some idea concerning the length of time you might want to stay in the house. If the cost of staying includes these repairs, you may want to limit your time in the house to a few months while you explore the low-rent housing in your area and find a full-time job.
Some of the low-cost housing in this area--and probably yours, too--are run by the county or by charities especially for the benefit of people who have disabilities and are very low income. A few base the rent on your income. These tend to have waiting lists. See if you can get on a waiting list while you are figuring out what you want to do. You can opt out when your name comes out if you decide it is not for you. Take your time making a decision. Do not commit to a yes or no to your sibs until you have both adjusted emotionally to the changes you are facing and also have the facts you need to make the best decision for you. Find as many options as possible before even trying to make a final decision. It is a lot harder finding those options when you are very low income. Look in the phone book and call every agency or charity who might present special opportunities for you. You will need to take the time you used to spend caring for your mother in finding a good place for yourself.
Home ownership, esp when one doesn't really own it, can be VERY expensive! Shelling out a lot in repairs when you might never be able to recoup it doesn't make sense. OP won't get kicked out immediately, but she can start penny-pinching and save everything she can until that time comes, to have a little nest egg to transition. Meanwhile, be looking into subsidized housing?
2) Although Medicaid does sometimes (depends on the state) pay for in-home care, which can go to a family member, it is NOT full time, not even close. However, until #1 changes, #2 doesn't apply.
Based on a comment posted by OP:
"She is now getting my dad's pension and his larger share of social security..."
mom may not even qualify for Medicaid, facility or in-home care. This house question is putting the cart before the horse.
I am about to do major driveway repair and a new roof, so I am looking at $15-20,000. You are wise to give careful thought to whether or not you can take on a home.
I think you need to come up with a long term plan, one that involves finding a place to live that you can afford. Unfortunately, it doesn't get any easier the older you get; if you already know it's going to be a burden you can't afford, you need to start thinking about other living accommodations.
Good luck!
If the children receive equal shares, one or more can disclaim their share, which would then go to those remaining. If only one doesn't disclaim, they get 100%.
If you can’t afford the taxes and maintenance then you need another option. Talk to your family about their expectations.
From what you have relayed, I would suggest finding another part time or fill time job and moving into a place you can afford. You then could let the home be sold and not have to deal with the taxes or repairs.
In other words, the Medicaid agency will file a claim against her estate for the cost of these services--if it goes into probate.
https://www.aarp.org/health/medicare-insurance/info-1996/aresearch-import-629-D16443.html
You and your siblings need to use some of mom's money to consult an eldercare attorney to set up a caregiver contract for you (if that's what you want to do) or decide how to ease mom into a facility and get the house sold.
I hope that you have applied for low cost/Section 8 housing in your area and consulted with a caseworker about food stamps, job training programs and the like.
If you ENJOY caregiving, look into getting CNA training and you will be able to choose your job; there is a huge shortage right now.
Medicaid may allow a renter but that rent money would probably go to offset the persons care. Getting a roommate may not be permitted. OP may not be able to live there without showing they have the ability to pay the bills. Its not cut and dry. Each situation is different, each State is different.
I was told by a caseworker that the Will was pretty much null and void. First meaning that the recipient no longer has any money if going on Medicaid. Second , if there is a house and doesn't sell before death, there will be a lein put on it when the recipient passes. Medicaid must recoup what they can. The house will have to be sold at this point, with the lean being satisfied. If the lean is more than the house is worth, than there is no inheritance. No one gets the house.
Now Community Spouses, Caregivers, disabled children (just to name a few) maybe allowed to reside in the home before and after the recipiants passing BUT a lein will be placed on the house upon the recipients passing. This lein will need to be satisfied if the person allowed to live in the house leaves, sells, or dies. So see, no one really inherits. Wills mean nothing if the person writing it needs their money or their house sold for their care.
At this point, I would not worry about this. When the Medicaid application is done, questions will be asked. And then it will be decided if you can remain in the house. It would not hurt, though in the meatime, to contact Medicaid and run by them how this would work for you. I am pretty sure they will tell you that you will be responsible for taxes, ect. I think the wise thing would be is to start putting away for ur future. If your health problems are such that SS disability could be applied for, then do it. Find out what resources are out there for you if u find you can't stay in the house. HUD has a nice apt building in my town. They take 30% of your monthly income to pay for rent. Depending on your income, look into Medicaid for your health insurance. In my state they also pay dental and vision.
I so hope you will be able to remain in the home. Don't take what I have written on how it is, just want you to realize there is more to it.
Even if you don't think you will qualify, apply anyway. It doesn't cost anything. Don't mince anything, be brutally honest about your own health issues. They also have special provisions for those who can work part time.
Everything else said is spot on, esp the part about looking out for yourself - certainly continue caring for your mother while you are there, but squeeze every dime you get to set aside funds for your own future, whatever that may end up being. I mentioned it elsewhere, but will add it to JoAnn29's post - your mother has a pension and SS, so depending on how much those add up to, she may not even qualify for Medicaid. Until that is determined, the rest is moot.
If I owned the house by myself, I might sell it and move, but so far I have chosen to stay b/c I have enjoyed being "the keeper" of the family home and I enjoy my involvement in the community. I live on a low level of Social Security payments, so paying to stay in this home leaves me nothing extra, but as my husband used to say, "You have to live somewhere."
In my life I have lived many "somwhere's" including many years being homeless or living in a van or motor home. Maybe my willingness to spend most of my resources to live in this house is because this is b/c this is a satisfying new stage for me.
Excuse my digression into my own life. You get me started when you wondered if taking on a house was expensive. Yes, it is!
You say that your Mom is on medicaid. How she can then afford 4,000 in taxes is beyond me. She cannot due to spend down. So there is also that. If you cannot afford the taxes it is difficult to imagine how you can inherit the house also.
I would use this time to save like mad. Just save like crazy. There are ways to live VERY INEXPENSIVELY. My bro lived in a trailer home he bought for 30,000 end of his life (it appreciated to 100,000 at sale due to his improvements. His monthly space and utilities were 600 a month in So. Cal, so I would be the first to tell you you can live in a wonderful space inexpensively still with a lot of research on that on your part. Meanwhile, it is imperative you SAVE like crazy and become as informed as you are able. Sure wish you good luck. Right now you are a caretaker of the property and somehow family, the POA, is going to have to come up with a way to pay taxes if Mom cannot. As she is on Medicaid I assume she cannot.