Estate Law Questions? Ask an Estate Lawyer.
Good morning. Thanks for using JUST ANSWER . My name is***** and I'm happy to be of service. Every state has different rules and regulations concerning Medicaid qualification, so please consider this general information, rather than specific advice. The 50% deed to you is still within the five year look back period and will continue to be so for several years. If you are going to acquire 100% ownership in order to refinance it should be done as soon as possible. That can be a problem with Medicaid spend down requirement, whereas if she maintains an ownership interest in the home, it would not be considered. A written caregiver agreement for you to provide services during her lifetime, may be necessary in order to establish adequate consideration for the transfer of ownership of the property to you.
Massachusetts law regarding adult adoptions of another adult is fairly easy to understand. If you have not been on the line about that, you can see: http://bristolcountyprobate.com/adoption-adult.htm. These forms can easily be adapted to any Massachusetts County. You should consult with a local elder law specialist in your area to pin down the exact steps that you need to take to preserve the home for both of you. I cannot refer to specific attorneys, but I can send you a list of such specialists if you tell me where you live.
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In order to refinance the house, if she continues to own 50% she will have to sign off on at least the mortgage, and possibly the note 2. These asset considerations are very local, so you have to take this up with Massachusetts Medicaid to determine what their criteria is for leaving the house alone. Perhaps it can be shown that the home will be necessary for her to return to would you living there to take care of her. That might keep it out of the equation.
It would be best to transfer the remaining 50% and then wait until at least five years from the 2013 transfer to apply. Also this question should be asked directly to Massachusetts Medicaid to determine how they look at this exact situation. They can tell you what their requirements are, whereas I can only guess at them from this distance..
Probably not verses Mass. Medicaid if the questionnaire is accurate. It might insulate against creditors by making in immune from judgment liens.
Hello again. I hope that I have provided excellent service and, if so, would love a 5 star rating. If not, please let me know how I can further assist you. There is no additional charge to you for rating me. A bonus is not required, but is always appreciated.
Are you confused about my reply Concerning your trust question, or is it about the rating request?
Putting the property into a trust is commonly done; however, if the transfer takes place within the five year look back period, it must be disclosed on the Medicaid application. That permits valuation of the applicants interest from the standpoint of Medicaid eligibility. Putting the property into a trust in your name as trustee, would avoid a title search by creditors looking for property in your friend's name. I hope this clarifies what I said earlier.