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| ~ My Dad passed away from a long term illness in Dec. 2004. I stayed with my Mom to help care for him for several years. My parents had deeded my siblings lots next to them when they married years ago. I became disabled around the same time my Dad passed away. After Daddy's death she deeded me the home place, the remaining lot. She kept a life time estate in it. My Mom started getting sick last year. My siblings and I kept a watch on her and helped her. A few weeks ago she got a bad infection that sent her into an end stage Alzheimer's. She is having painful muscle contractions and couldn't move. She stayed in the hospital for over a week. The infection cleared up, but she needed around the clock care. I don't know how long she will be in the nursing home. When Medicaid has to kick in will I loose my inheritance? Is the property protected. It has been in my family for years. It isn't worth much compared to most, probably around 50,000, but my Daddy worked hard for it and I am not sure if it is protected. She transferred it before the look back period changed, but she does have a life estate in it. Me and my 2 siblings all have power of attorney. Can anyone give me any advice? This is all so hard and confusing. It was hard enough going through the illness with Dad, but now my Mom and this. Any information is appreciated.~ Thank you Nita, Kentucky
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| Nita, I assume you & your mother reside in KY--Medicaid policies can vary, sometimes significantly, from state to state. First, realize Medicaid will never "kick in". You will have to apply for Medicaid benefits for your mother. Assuming your mother is Medicaid eligible in all other respects, if she deeded her residence to you after you became totally and permanently disabled, that is an allowable (to Medicaid) transfer and will not keep her from obtaining Medicaid even if the transfer is "caught" within the lookback period. The transfer of an adjoining lot may not qualify the same way the residence does because KY Medicaid recently changed (in September) policy regarding transfers of assets other than a residence to a blind or disabled child--other assets must now go into a Special Needs Trust (SNT) for the blind/disabled child to be allowable. So, the adjoining lot may have to be returned to your mother and then it can be placed in a SNT. Alternatively, after returning the lot, if you verify the lot is up for sale you may get the value of the lot excluded (more info would be needed to properly advise you and you may need a Medicaid attorney). Assuming a Medicaid application is made and all transfers are either allowable or have been "cured", there is still the issue of the Life Estate Interest your mother holds. For Medicaid eligibility considerations, a Life Estate Interest has value (the Medicaid attorney can calculate that) but, regardless of the established value, the value is excluded and will not keep her off of Medicaid. However, after her passing, Medicaid Estate Recovery policy is such that KY could conceivably file a claim against the value of the life estate (there are a number of variables here that your attorney can sort through). And realize that an individual's will dictates how that individual's possessions will be distributed; however, the will is only applicable after death and during the time the individual is living they may need to do whatever is necessary in order to obtain Medicaid nursing home benefits. So, yes, often times an individual does lose their inheritance because there is nothing to inherit after the parent liquidates their assets in order to qualify for Medicaid. You really should locate an attorney that does Medicaid planning in KY. I hope I have cleared up at least some issues for you. Joe Whitehouse, Medicaid Consultant, Louisville, KY.
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| Thank you for taking the time to reply. I don't think Mom will have any trouble qualifying for Medicaid. If she doesn't get any better she will have to apply for Medicaid soon. She did deed me the home after I became disabled. My husband and I maintained her home. After Daddy died we remodeled her kitchen. While he was living we put in a handicap bathroom and shower, so we could take care of him better at home. We kept up any problem that came up. We had done that since Daddy was disabled, just because we were the only ones that would help them. If my Mom passes away before I do the house goes to me, but the problem would be her life estate in the home is that right? It won't go through probabte, but the laws have changed since she made this deed. Do you see any chance that I will be able to keep the home. Mom doesn'st have a will.. she and Dad did will to each other and then when Dad died she deeded me the home and kept a life time estate in it. They didn't have anything else of any value. I have an appointment with Medicaid soon.. is there anything you can advise me that I may not know or be aware of that could help me? Thank you We do live in Kentucky.
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| Nita, you are sending mixed signals. On one hand you say the home was deeded to you and your mom retained a life estate interest. On the other hand you ask if the house may go to you at your mom's death. Was the home deeded to you, as in a legal transfer showing you on the deed with your mom retaining a life estate interest? If so, you needn't worry about eventually getting the home--you have the home now even though your mom has a life estate interest. And if she goes on Medicaid, and then passes away, the life estate could be subject to an estate recovery claim by Medicaid. A lot depends on the value of the life estate interest and a Medicaid attorney can calculate that for you. And depending on the experience level of the Medicaid caseworker you deal with, you may or may not need the Medicaid attorney to convince the Medicaid caseworker that federal law allows transfer, without penalty, of a Medicaid applicant's/recipient's home, to a blind or disabled child of ANY age and it doesn't matter whether or not the blind or disabled child ever resided with the parent. And depending on the value of the life estate interest, and other variables you can discuss with the Medicaid attorney, it could be best for your mom to give back the life estate interest. Discuss it with the attorney. Joe Whitehouse, Louisville, KY.
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| ~I don't mean to send mixed signals, it is just that "life estate" has been defined so many different ways to me. My Mom did deed me the home after my Dad died and after I became disabled. She did keep a life estate in that home. My Mom isn't capable now to make decisions. My sisters and I have power of attorney. If my Mom has to stay in the nursing home long term is the home protected from estate recovery. Is there anything else I can do to protect it. Do my sisters have a say in the home now while she is still living? Can one of them give back the life estate or is it too late for that? I am just trying to educate myself a little before I go talk to someone. I am praying I won't even have to worry about it, but I know how Alzheimers is. We went down that road with our Dad for many years. Thank you Nita~~
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| Nita, you ask if the home is protected from estate recovery. Yes, the home is protected from estate recovery because it is your home, and your home, bank account, car, etc., can never be the subject of any estate recovery claim to repay what Medicaid may have spent on your mom. But...., your mom does have a life estate interest in the home she deeded to you. And in my previous replies I explained that life estate interests may be subject to estate recovery claims. So, as I previously suggested, please contact an elder law attorney that does Medicaid planning in KY so you can determine if the value of your mother's life estate interest is enough that a claim might be filed against that value some day. If it is determined that the value represents an estate recovery risk, there may be options. But you won't resolve this matter until you meet with a competent Medicaid attorney. Joe Whitehouse, Louisville, KY.
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| Thank you.. you have been very helpful. I will talk with a lawyer this week before my appointment with medicaid. I don't know if we have any Elder Care lawyers here. I do know one that specializes in Esate Planning. I will see what I can find out. Thank you again for your replies and your advice. Nita
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| Nita, You can look on the attorney directory on the main site at www.elderlawanswers.com to see if there is an elder law attorney near where you are. Good luck.
Harry S. Margolis
ElderLawAnswers
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