How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask legaleagle Your Own Question

legaleagle
legaleagle, Lawyer (JD)
Category: Legal
Satisfied Customers: 13441
Experience:  Attorney-Business degree from The University of Texas
4622441
Type Your Legal Question Here...
legaleagle is online now
A new question is answered every 9 seconds

Really a question for an elderly law attorney. It regards medicaid.

Resolved Question:

Really a question for an elderly law attorney. It regards XXXXX XXXXX wife and mother both bought a house in 1998. In 2001 my mother in law moved out as she got married. In 2005 I moved in and took over half the mortgage prior to that my wife had paid the mortgage since 2001. In Aug 2006 we changed the deed to remove my mother in laws name and me onto the deed. Last year my mother-in law had a stroke and now needs nursing care - my wife is in the process of applying for medicaid for her. The medicaid people who she is filing with say that the transfer of the house will count as a gift and means that she will not be eligible for medicaid until the value of the half share of a house she gave away has been used up in a 'penalty period'. Though they seem to be calculating the value of the house irrespective of the mortgage against it? Is this correct? What are our options here? Put her back on the title so its her residence again - if so will they be able to claim back upon her death?
Submitted: 5 years ago via USLaw.
Category: Legal
Expert:  legaleagle replied 5 years ago.
If you put her name back on the title they will not be able to sell it at her death since you and her daughter have been living there more than 5 years prior to her death so it is protected as being your property after she dies even if you transfer the title back to her. They do value the house at the fair market value at the time she gave it to you, not the amount of mortgage that is remaining.
Customer: replied 5 years ago.
Thanks. If we put her back on the deed and then (in the future) sold the house could they claim any of the proceeds? Either at the time of sale or again when she dies?

Where does the reference to the 5 year statute come from?
Expert:  legaleagle replied 5 years ago.
If you sell before her death then yes her protion of the proceeds would be income to her and she would have to spend it down and stop having Medicaid until she is down to just $2000 again.

It is actually 2 years I guess I mistyped but here is the artilce and I work for DADS in Texas and we try to take homes all the time since we administer Medicaid in Tx and I know from expierence we can not take it if a previous caregiver is living in the home. However I misread that the mother moved out in 2001 so she was not living with daughter and being taken care of by daughter so the house is not protected under this exception.
http://books.google.com/books?id=bL0l2ADU4rcC&pg=PA139&lpg=PA139&dq=medicaid+protect+home+when+ child+lives+in+it&source=bl&ots=GT3j0angs_&sig=wfyRKB0928h8eGozLknsifYqYEM&hl=en&ei=LZZzSuqqJpX4NfC6lbEM&sa=X&oi=book_result&ct=result&resnum=1#v=onepage&q=&f=false

You and your wife would be better off getting an equity loan and buying her out of her share and she has to deplete that for Medicaid but at least your house would be protected since she sold it for value and it was not just a gift.
Customer: replied 5 years ago.
Thanks. How much would the equity loan have to be for? If they consider the value of the house to be its market price we don't have that much equity in the house (we have a mortgage), more like 40,000 currently and 30,000 at the time we changed the deed.

Can medicaid take the home from us (or force a sale) after her death if we are on the deed? Also my mother in law only had a 50% stake in the house in the first place.

If we put her on the deed couldn't the nursing home or other creditiors she may have come after the house - could they force a sale?
Expert:  legaleagle replied 5 years ago.
<p>They can not take the house at her death if you are on the deed but they can put a lien against it for the amount of money that is her share so that when you do sell you have to pay the lien first. </p><p>Your options are leave title the way it is and she has to spend down the money they claim she should have gotten for the sale so someone, you, her daughter or her husband has to pay for nursing home until she qualifies for Medicaid. Then the house is protected from any of her creditors because her name is XXXXX XXXXX the title.</p><p>Put her back on the title, she gets medicaid now but if she has unpaid debts, creditors can seek judgments against her and place a lien on the house as well as medicaid at her death.</p>
Customer: replied 5 years ago.
Thanks!
(Appreciate the time - Just these and I'll pay).

The critical thing though is what is considered her part of the house? Is it 50% of the value (not including mortgage) stated on the tax bill or 50% of her equity in the house at the time of transfer/sale? If the 3 of us are on the deed does she then only have a 1/3 share?

Can an an unsecured creditor (a credit card) sue to place a lien against a house?
Expert:  legaleagle replied 5 years ago.
Her share is the share she had before she transferred to you. So if she and daughter shared 50/50 she has a 50% share of the fair market value minus the amount of mortgage due, so 50% in any equity that she would have had if she had sold the house.

Yes an unsecured creditor can sue to place a lien on the house if it is in her name at all.
legaleagle, Lawyer (JD)
Category: Legal
Satisfied Customers: 13441
Experience: Attorney-Business degree from The University of Texas
legaleagle and 9 other Legal Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Not only did he answer my Michigan divorce question but was also able to help me out with it, too. I have since won my legal case on this matter and thank you so much for it. Lee Michigan
 
 
 

Meet The Experts:

 
 
 
  • Tina

    Lawyer

    Satisfied Customers:

    8436
    JD, BBA Over 25 years legal and business experience.
< Last | Next >
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    8436
    JD, BBA Over 25 years legal and business experience.
  • http://ww2.justanswer.com/uploads/RA/ratioscripta/2012-6-13_2955_foto3.64x64.jpg Ely's Avatar

    Ely

    Counselor at Law

    Satisfied Customers:

    19941
    Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    8189
    25 years of experience helping people like you.
  • http://ww2.justanswer.com/uploads/jespoag/2008-12-17_222355_jessepic.jpg JPEsq's Avatar

    JPEsq

    Attorney

    Satisfied Customers:

    2132
    Experience as general attorney, in house counsel, SSDI, Family Law attorney, and law professor
  • http://ww2.justanswer.com/uploads/gsenmartin/2008-04-22_214950_me1.jpg Guillermo J. Senmartin, Esq.'s Avatar

    Guillermo J. Senmartin, Esq.

    Attorney

    Satisfied Customers:

    110
    7+ years of experience handling various legal matters.
  • http://ww2.justanswer.com/uploads/PA/PaulmoJD/2013-10-10_195858_JAImage.64x64.jpg Law Educator, Esq.'s Avatar

    Law Educator, Esq.

    Attorney

    Satisfied Customers:

    31621
    JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    15975
    Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.