My father who is 93 is in a nursing home and was recently approved for Medicaid. He still owns a condo which is rented. I have POA and make all the financial decisions. The tenant wants to purchase the condo and renovate it but we can't sell because Medicaid would take the sale funds. Can we draw up a lease with option to buy at an agreed upon price at my father's death, which would allow the tenant to renovate now? Is there a rule against leasing a home with option to purchase upon death of the Medicaid recipient?
Having been a Realtor for a lot of years, your tenant would be a fool to enter into such a contract, in my opinion . . . with the idea that he was going to put many thousands of dollars of renovation into a property he may never be able to own at the price you negotiate now....? But that's me.
But YOU, most assuredly, should run everything past an expert -- and that'd be an elder law attorney...no one else.