My x spouse got his mother to take a line of credit against her fully paid off home of $50K. He needed a down payment for a home he wanted and extra money to pay off his debt so he could qualify for this house. This house is his inheritance when she passes, but she's never done anything like this for him or his siblings. She's 86 and recovered from lung cancer, but in poor health.He did this to be in the same school district that I'm in after 10 years, but I'm concerned that if she has to go into a nursing home, doesn't Medicade take the house to pay for care and they'll see that line of credit against it and go after that money. Because I know the house is his inheritance, will he had to come up with that money quick? I'm trying to find the negatives in her doing this. There's proof she did this and there's proof that he put down a large sum on this house (which he never had) and I'm asking because he's been trying to get custody of our son but had to live in the district first. He bought a house way out of his financial means so what can happen if she goes in the nursing home and they use the house to pay medicade?
State/Country relating to question: Ohio
It is possible that she will need to sell the home for nursing home care. It is also possible that benefits can be denied or delayed by the mother's actions. There is a look back period of 5 years to determine whether assets have been liquidated. None of this will affect the son that received a gift from his mother. It can have dire consequences on the son's mother.
This communication is not intended as legal advice. A local attorney should always be consulted for legal advice. No client/attorney relationship is intended or created by this communication.
Another question. She's very savy with her finances, as well as documentation. I remember this when we were married. She wouldn't even start a college fund for the child when he was born with his inheritance because she had to die first. Because of his debt she was the only bank and I'm sure he worked on her and worked on her to get that money, but if she wrote up some type of a laon agreement with him that he would have to pay the money back if she's in a nursing home and needs the assets to pay for care, that would be the only way he would be "tired" to that money. Correct? I understand your answer that she did a very risky move to help her son and put herself in a bad position, just wondering if there was a loan agreeement that would be the other way he would be tired to the cash.
A loan agreement or obligation for funds would be an asset that the nursing facility or agency would go after. They could force payment by the son to the facility. The note is effectively assigned to the agency caring for the mother.
The transaction between mother and son is totally legal and legitimate. The consequences affect the mother more than the son.
Part of the 'Save the Dream" project in Ohio helping individuals with foreclosure
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