Can I Get Medicaid If I Own A House

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Florida Medicaid Estate Recovery Program

Will Medicaid Take My House?

If a probate is opened after you pass, Medicaid will file a Statement of Claim in your probate. This is done through the Florida Estate Recovery Program and the Agency for Healthcare Administration.

This Statement of Claim will be the total of all the care Medicaid has paid for on your behalf. These claims can sometimes be hundreds of thousands of dollars. If your probate only consists of your primary residence and the probate judge determines it is homestead protected, Medicaid cannot force a sale.

If your primary residence is not determined to be your homestead, then the estate will likely need to sell the home. The proceeds of this sale will be used to pay Medicaid. If your probate consists of cash accounts, these assets will be available for payment of a Medicaid lien.

Cash accounts include:

Will I Lose Medi

Unfortunately, when it comes to Medi-Cal, there is no such thing as separate property. Medi-Cal will count all of a spouses separate assets when determining a married applicants Medi-Cal eligibility. Some couples will go through a divorce just to protect their separate assets!

What Happens To My Property After I Pass Away

After your death, Medicaid enacts estate recovery, which is the process of the government reclaiming the money you owe from receiving Medicaid payments.

That means while youre living in a nursing home and receiving payments from Medicaid for your nursing home expenses, your residential home will remain your property. However, Medicaid keeps a running tab of all of the payments they make on your behalf. After you pass away, Medicaid will try to seek reimbursement from your estate and can force the sale of your home in order to pay Medicaid back.

There are planning options to protect the home from Medicaid estate recovery, but they must be done prior to the Medicaid recipients death. To ensure your loved ones receive your house after your death, you must adequately prepare and protect your assets with a Medicaid planning attorney. With a professional legal advisor, you can secure your house so that your loved ones, not the government, are the lawful beneficiaries.

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Liens On Homes Of Living Recipients

Passage of the Tax Equity and Fiscal Responsibility Act gave states the option of placing a so-called TEFRA lien18 — an encumbrance filed against real property in the local land recording office — on the home of a permanently institutionalized Medicaid recipient in which he or she no longer resides. A TEFRA lien does not interfere with the homeowners use of the property, although it does prevent him or her from transferring the home as a gift to non-disabled adult children or other persons before the State has an opportunity to file a claim against it. Any attempt to transfer title of the property to anyone other than the spouse is presumed to signal that the house is no longer the home of the still living recipient.

Recoveries made through successful claims reduce Medicaids share of the recipients total long-term care expenses.19 The maximum amount the State can claim is based on the expenses correctly paid by Medicaid on the homeowners behalf, but the amount cannot exceed the owners equity interest in the property. If the Medicaid claim amount is less than the equity interest, then any remaining equity is counted as an asset available to the recipient, who may no longer be eligible for Medicaid until these excess assets are depleted.

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While Medicaid finances most long-term care in this country, Medicaid is supposed to be “the payer of last resort” when it comes to long-term care. Medicaid pays for long-term care only for those who are poor or who have become poor after paying for medical expenses or nursing homes.

Many people try to give away their assets to relatives in order to qualify for Medicaid. But when an applicant gives away property within five years of applying for Medicaid coverage of long-term care, Medicaid presumes that the gifts was made to qualify for Medicaid. This will trigger a period of ineligibility for Medicaid long-term care benefits on the theory that those assets could have been used to pay for the individual’s care.

Not all transfers, however, trigger a period of ineligibility for Medicaid. Federal and state Medicaid laws contain various exceptions to the rule against making gifts within five years of applying for Medicaid for long-term care . Following is a brief review of the most common exceptions.

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Medicaid Application Strategies For Homeowners

If you are a senior citizen or disabled person in need of coverage through Medicaid and you own your own home, dont despair. Having large assets such as a home does not automatically disqualify you for Medicaid coverage. Familiarizing yourself with the eligibility requirements early on is crucial.

Find an elder-law attorney who specializes in asset protection and Medicaid planning strategies. They can help you and your loved ones prepare an asset spend-down strategy to meet the requirements. Doing so will let you receive coverage without incurring penalties, liens, or estate-recovery tactics.

About the author, Carlos Nath:

Carlos Nath is the Senior Trust Advisor with KTS Pooled Trust. As a seasoned professional with over four years of experience in the New York pooled trust space, Carlos has helped thousands to enroll and set up their accounts with KTS. He is proficient in understanding the Medicare process and provides assistance in clarifying what clients may need. Previously, Carlos worked with a Medicaid consulting firm as an advisor who helped clients who were seeking Medicaid assistance.

The Home: Medicaid Rules

Noncountable asset. The home of the applicant is subject to very special rules established in both state and federal Medicaid law. As a general rule, a home is exempt if all of the following conditions are met:

  • It is occupied by the applicant and/or the applicant’s spouse.
  • The total equity value is less than $543,000 , and
  • Title must usually be held in the name of the applicant and/or the applicant’s spouse.

Transfer rules. However, in most cases, the house cannot be gifted to someone without penalty . But there are exceptions to this rule. Under federal law, when title to the applicant’s home is transferred to another, this will trigger a period of ineligibility for Medicaid coverage of long-term care unless the transfer is made to one of the following individuals:

  • the spouse of the applicant
  • a child of the applicant who is under age 21
  • a child of the applicant who is blind or permanently and totally disabled
  • the sibling of the applicant who has an equity interest in the home and who has been residing in the home for a period of at least one year immediately before the date the applicant becomes institutionalized, or
  • a son or daughter of the applicant who has been residing in the home for at least two years immediately before the date the applicant becomes institutionalized, and who provided the applicant with care, which permitted the applicant to reside at home rather than in an institution or facility.

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When Should I Start Medicaid Planning

Medicaid is an important resource for any eligible individual, but it becomes increasingly important for the aging population who must consider long-term care. Long-term care is necessary but very expensive, with the average monthly cost of a private room in a nursing home in North Carolina at $8,060.

North Carolina Medicaid will only cover the costs of a nursing home if it is medically necessary meaning that the individual needs the type of care that can only be provided at a nursing home. If your needs meet this requirement, you can only secure Medicaid if:

  • You receive SSI
  • You meet the income limits
  • Your income is over the income limit, but you have medical expenses that meet or exceed your extra income. You will be required to meet a deductible before you qualify for Medicaid coverage, and you can have no more than $2,000 in resources.

The above calculations are further complicated if you have a spouse who will continue to live independently. Because nursing home care is so expensive and Medicaid coverage is complicated, it is important to plan ahead for Medicaid coverage.

Do You Have To Repay Medi

What if I am on Medicaid and want to sell my house?

The Medi-Cal program must seek repayment from the estates of certain deceased Medi-Cal members. Repayment only applies to benefits received by these members on or after their 55th birthday and who own assets at the time of death. If a deceased member owns nothing when they die, nothing will be owed.

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What Does Medicaid Consider An Asset

The rules that govern whether or not an individual will qualify for Medicaid are complex and can be difficult to understand. Your total assets will be considered when determining Medicaid eligibility. However, some of your assets may be considered exempt and will not be used in determining your eligibility. For instance, generally personal property is exempt, as is equity in a homestead to a cap of $500,000 . Multiple other types of exempt assets exist, including some of the trusts discussed elsewhere on this site .e

At Willis Law, we are committed to ensuring clients fully understand what types of assets are exempt and what are not, and then working closely with our clients to see that their needs are addressed, all Medicaid planning strategies are utilized and that their assets are protected as thoroughly as possible.

Our law firm is dedicated to a Christian model of service with a mission to protect clients as they make the best decisions for their family and future. Let us guide you with dignity and discretion.

Call or contact our Kalamazoo office byemail for a consultation with a Michigan Medicaid planning lawyer.

Will The State Take My Home If I Need Medicaid To Pay For My Care In New York

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Not if you have done asset preservation planning. The state never takes your home. However, ownership without proper planning may result in a forced sale if Medicaid demands reimbursement after death. Medicaid may also impose a lien during your lifetime if it is paying for nursing home care. Fortunately, these scenarios are avoidable by undertaking asset protection planning with a reputable elder law attorney. Elder law attorneys are best suited to establish viable long-term health care plans and achieve Medicaid eligibility while preserving assets for the benefit of the applicant or his or her heirs.

Unless you have purchased a long-term care policy, the only health care insurance that pays for long-term care is Medicaid. In New York, an applicant for Medicaid cannot own more than approximately $16,000 in assets. While the Medicaid recipient is living in his or her home, it will be exempt. This is known as Community Medicaid, where aides are provided at no cost to the applicant. However, if the home remains in the name of the patient, Medicaid will seek to recover after death. Elder law attorneys can discuss strategies, such as the use of a trust, to avoid such an outcome. New Yorks Community Medicaid eligibility rules are set to change April 1, 2021. The advance notice of these changes is affording clients an opportunity to employ strategies that will no longer be available after April.

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Sorting Out Confusion About The Property Lien

Medicaid places a lien on the recipients properties when they start receiving benefits. There is usually some confusion for applicants about the property lien and exactly what it does. A lien is a claim against a specific piece of property. The lien must be settled when a property is sold or the title is transferred. A property lien does not mean that Medicaid now owns the property.

Golson explains that there is a common apprehension among Medicaid applicants and their families that Medicaid is going to take Grandmas house. Families are especially sentimental about a home that may have been in the family for generations. Grandmas house is a source of pride for the family. It might be the first house that family bought and paid for and the place to stay if anyone is ever in need. Or perhaps Grandma may have made the family promise to never sell the house.

Lets be clear. Medicaid never takes ownership of anyones property, Golson says. When Medicaid places a lien on the property, it is a way to potentially recoup some of the costs associated with providing benefits. However, there are more nuances to this claim that meets the eyeand thats good news for many Medicaid recipients.

Here are various scenarios of how the lien could be settled:

Golson advises Medicaid applicants to complete these steps carefully during the application process as it pertains to property ownership.

1. Read the lien carefully before signing.

3. The document has to be notarized.

Get Your Home Ready To Show

Am I eligible for Medicaid?

If you plan to list your home with a real estate agent, you will need to prepare your home for showings. This includes a thorough deep clean, a complete decluttering process, and staging for online listings and for showings. You want your home to look brand new so your buyers can picture themselves living it as if it were already theirs.

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If I Live In North Carolina Will I Lose My House If I Need Medicaid

Many people believe that they will lose their house or will need to sell their home when they apply for Medicaid, but this is not true. With adequate planning, Medicaid will allow you to reside in the safety of a nursing home without losing your hard-earned home.

You can own your home when you apply and continue controlling it throughout your life. Medicaid will not count your house as an asset during the application process if you intend to return to it. If you plan on leaving your house permanently, your spouse or other loved ones may still be able to live there without it being considered an asset, provided Medicaids strict categories are met.

We Provide Options: Sell Home And Benefit From Money Or Sell Real Estate To Purchase A New Home

Some Floridians want to sell their house in order to downsize or even upsize . In either situation, with proper Medicaid planning, eligibility for benefits can be maintained. In fact, in our medicaid-planning lawyers frequently work with realtors when our clients either want to sell their house and protect the proceeds from Medicaid or they want to purchase real estate for medicaid asset-protection purposes.

If you dig into the Department of Children and Families ESS Medicaid policy handbook , you will find Sections 1640.0537, 1640.0543.03 and 1640.0307.01, which are helpful.

1640.0537. Good Faith Effort to Sell.

This section of the medicaid manual states that property may be temporarily excluded if the individual is making good faith efforts to sell at fair market value. So just by attempting to sell any property , that property is deemed not-countable for Medicaid-eligibility purposes. But the Medicaid application examiner wont just take your word for it, they will ask for proof. You can verify that you are attempting to sell the real estate by providing your listing agreement with a real-estate broker, MLS listing, newspaper listing, etc…

You also must be reasonable. If your property is worth $200,000 and you are “attempting to sell” it for $800,000, that would not pass the good-faith effort test.

1640.0543.03. Home Replacement Exclusion.

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What Is The Look Back Period

New York has a 60-month “look back” period for Medicaid applicants seeking nursing home care. Officials will review the applicant’s financial transactions for 60 months before the application date, checking whether any assets were sold or given away for less than fair market value.

The “look back” was created to discourage applicants from simply giving their possessions and cash to friends and family to qualify for Medicaid. If any transfers violate the fair market value rule, the applicant will endure a penalty period of Medicaid ineligibility.

Can Medicaid Put A Lien On My House

Will I have to sell the house to qualify for medicaid?

The simple answer is no. So long as the house continues to be your primary residence, Medicaid cannot put a lien on the home.

Generally speaking, to qualify for nursing home Medicaid , a Medicaid applicant can have up to $15,900.00, not counting tax-deferred retirement accounts however the required minimum distribution from such accounts is counted as income. If the applicant is married, then the primary residence is an exempt asset so long as the spouse resides in the home. The exemption also applies if a minor child, disabled child, or a sibling with an equity interest lives in the home Additionally, the Medicaid imposed equity limit on a primary residence, which is currently $906,000, does not apply under such circumstances.

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Who Can Get Medicaid

  • No matter your state, you may qualify for Medicaid based on your income, household size, disability, family status, and other factors. But if your state has expanded Medicaid coverage, you can qualify based on your income alone.
  • Enter your household size and state. We’ll tell you who is eligible for Medicaid, if your state expanded and if you qualify for Medicaid based only on your income.
  • If you think you have Medicaid eligibility, you can create an account and fill out a Marketplace application. If it looks like anyone in your household qualifies for Medicaid or CHIP, we’ll send your information to your state agency. They’ll contact you about enrollment. You can apply any time of year.
  • If you don’t qualify for Medicaid, we’ll tell you if you qualify for financial help to buy a Marketplace health plan instead.

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