Parents are almost 80 and need assistance. What should they do with their house proceeds so that they don’t lose all of it later to taxes and Medicaid should they need a nursing home? Can they gift us money towards our mortgage since we are all living together? Will this cause a problem under the 5 year rule?
Medicaid does a 5 year look back to make sure your mortgage isn't being paid off so your parents can get free long term care sooner. The government frowns on things like that, and so do us taxpayers.
The goal should be getting your parents the highest level of care possible with the sweat equity they've earned. That's the purpose of it. Medicaid is a last resort after all of their savings have honestly been used up, not squirreled away for "inheritances".
No, you cannot pay down your mortgage then have taxpayers foot the bill for their care when they need it.
That's what the money is for, their care. So do the right thing and don't try to commit fraud by hiding it.
They should be paying for legitimate living expenses.
Speak to an elder attorney if you want professional advice about how to budget and spend their money for their needs.
i would look into IL/AL for them. The proceeds from the sale of their home would be used to fund their care, not anything else.
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