Elder Law Answers
Specialists Help Seniors Buy or Sell a Home
Seniors who are buying or selling a house often have very different issues than younger buyers and sellers.
Read moreShould My 91-Year-Old Mom Buy a Home for Her and Me?
- March 26th, 2024
Q
My mother is a 91-year-old widow and currently lives alone in her home. She has decided she doesn't want to be alone anymore. She wants to sell her home to my brother and use those funds as a down payment for a home that is large enough for me and her to live jointly. We would both be on the mortgage, as well as the title, and she would help out financially with household obligations. Will this hurt her Medicaid eligibility IF she were to need long-term care in the future? She is currently not on Medicaid.
A
It should pass muster since your mother will still be on the deed and you will have a shared obligation on the mortgage. The biggest issue may be demonstrating to your state’s Medicaid agency that your brother paid your mother fair market value for the house. He can certainly pay something less to reflect the fact that your mother won’t be paying a real estate broker’s fee, but you should keep records to show the value, either a formal appraisal or a screenshot of the current Zillow valuation.
In any case, if your mother is able to live with you for five years without applying for Medicaid benefits – a long time for someone who is 91 years old – she will be past the Medicaid lookback period and none of this will be an issue.
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.
Last Modified: 03/26/2024