Elder Law Answers
Can the State Take Mom's House for Medicaid Reimbursement?
My mom died in Massachusetts without a will while she was on Medicaid. My sister's name is on the deed to my mom's house,...
Read moreCan Creditors Take Mom's Home for Her Credit Card Debt?
- October 7th, 2024
Q
I have been living with and caretaking for my elderly mother for the past five years. She now needs long-term care and has recently qualified for Medicaid. The house is exempt from a Medicaid lien because I am on the deed. She has $17,000 in credit card debt. Can they still come after her house even though it's her debt and I’m on the deed? Should I get a quitclaim deed? I understand that the creditors can hopefully 1099 her debt, but want to make sure they don't go after our shared home.
A
The creditors may be able to go after the house, but probably wouldn’t for that amount of debt. Most likely if you explain the situation, they’ll back off and, as you say, issue a 1099 for the value of the waived debt. I’m afraid that any steps you might take to avoid the debt could cause other issues for you, such as a higher tax should you sell the house. We’d recommend that you consult with a local elder law attorney to be certain of the best approach. For one thing, it’s probably important to be certain that you and your mother own the house as joint tenants and not as tenants in common.
Harry S. Margolis practices elder law, estate, and special needs planning in Boston and Wellesley, Massachusetts. He is the founder of ElderLawAnswers.com and answers consumer questions about estate planning issues here and at AskHarry.info.