Follow
Share

I am asking this question for a friend that has a sick husband and adult children. The wife has been given advice on this question. She was told you can't do this because the couple owns the home jointly. If this the law is there any other option possible? The husband has been sick for many years.

This question has been closed for answers. Ask a New Question.
Find Care & Housing
Thank You again Ralph... your answers are mostly where I learned this info in the past.
Helpful Answer (0)
Report

There are three issues that usually come up with respect to the home and long-term care:
1. Will the home be "countable asset" for Medicaid eligibility purposes?
2. Will the home be a "recoverable" asset by the state after the demise of the Medicaid beneficiary?
3. Effective transfer to heirs.
Answers:
1. The homestead residence of a Medicaid applicant for long-term care services is almost always an exempt asset as long as the applicant has expressed an "intent to return" to the residence. In some states, like Florida, this is implied. In others, it must be indicated in some form. Some states do not consider a residence held in a revocable trust homestead property so this needs to be verified.
2. All states have a "Medicaid Estate Recovery" program charged with the mission of recovering assets at the demise of Medicaid beneficiaries. Most states will only pursue "probate assets", in other words, only those assets that are subject to probate. You are correct in that property titled in a revocable trust is not subject to probate (in most states) and therefore most likely not subject to estate recovery.
3. I believe this is handled in #2 above. I would only add that in some cases and in some states an Enhanced Life Estate Deed (Lady Bird Deed) may be more effective where it is permitted and other techniques are not effective with respect to other state specific issues as mentioned in #1 and #2 above.
Helpful Answer (0)
Report

Ralph I know the couple has a POA in order for both parties. I think that they were not given the correct info. by an attorney. Question ....this type of trust also saves the children from probate issues in the future, does it not?
Helpful Answer (0)
Report

Thanks Ralph Well I thought it is the best way to preserve the home in a future need ....the wife not being able to pay for in home care or long term care.
Helpful Answer (0)
Report

There is no reason why a home jointly titled cannot be retitled in the name of a living trust unless: a) it is not permitted by state law or, b) one of the joint holders does not "have capacity" (in other words, doesn't know what they are doing) and there is no power of attorney in place to allow someone to perform contractual functions for that person.
A more relevant question may be: Why do they want to re-title the property thusly?
Helpful Answer (0)
Report

Thanks Carol
Helpful Answer (0)
Report

This woman really needs to see an attorney. There are too many variances. Also, the attorney can give her alternatives if there are any. An estate attorney or an elder law attorney should be able to help her.
Thanks for being a good friend.
Carol
Helpful Answer (0)
Report

This question has been closed for answers. Ask a New Question.
Ask a Question
Subscribe to
Our Newsletter