She has dementia and is in a facility for memory care. I am using her savings at this time to pay the monthly care. Once that is spend down, I will apply for Medicaid.
The deed defines mom as to a "life estate" with me as a "remainder interest". Does a percentage of the sale remain with mom. Do I retain a percentage?
We're from NJ if that matters.
It will be worth the money to find out now how u will be effected.
In our state, any interest in a life estate is addressed on the Medicaid application. Our state claims against the sale of any property owned, in whole or in part, by the Medicaid recipient. The state claims some or all sales proceeds no matter how it is titled - life estate, JTWROS, Individual ownership or joint tenancy.
But for dementia, if she is the only person who can change ownership or sale within her lifetime, aren't all sales proceeds owned by your mom?
If the life estate was created 5 or less years before she applies for Medicaid, there may or may not be an ownership percentage for you to protect.
My brother and I would be the remainder men of any assets left if Dad sold the property. Luckily he has not done that nor has he mortgaged it.
You really need to take a copy of the Trust document to a lawyer who is well versed in Trust law and Medicaid.