There is a 5 year "look-back" as to transfers made for less than fair market value.
So, since you just got the property one year ago - you will have to wait another 4 years (5 total) before you can make application for medicaide or the total fair market value of the house is subject to her nursing home care costs.
So, your statement:
I have not tried anything so far. My concern is that if anything were to happen to my grandmother god forbid and she racked up a large medical expense bill that medicare or her secondary insurance wouldnt cover I need to know if the homestead act for Massachusetts will prevent any creditors from trying to take my home that I now legally own. I am trying to figure out what my options are if I am ever in that situation. Thank you very much for your help with this.
No, the Massachusetts homestead act would not curcumvent or be given priorty before the federal law which all states have a mandatory duty to comply with.
So, your options are to buy nursing home insurance - very expensive.
Hope that she doesn't need medicaide for 5 years.
I do have a question - does she live there with you and you take care of her?
Here is a link to the Massachusetts laws on the subject:
http://aspe.hhs.gov/daltcp/reports/MAliens.htm
The spend-down provision is that "you must self pay" for your nursing home care with the sale of all your personal and real assets to the point of financial devastation of your life's savings driving you into financial destitution. Nursing home eligibility will be determined by your lack of any available resources designed specifically to punish/impoverish your healthy spouse. This means that if one spouse needs private care, the other spouse needs to spend every dollar they have before the government will help with the costs!
The problem with the 5-year look back provision is that the new Medicare regulations do not consider the healthy spouse. It's a social punishment of the marriage certificate. It's a new social discrimination based on health. Eventually seniors will be forced to choose divorce for the sake of retaining their financial dignity.
Before you qualify for the government nursing home assistance program, there is a 60 month look back to see if and when you transferred your assets for less than fair cash value or you transferred your assets into a trust system or any system of transferring your wealth for the purpose of becoming eligible for the nursing home program depriving the state of all your available resources for your long-term health care.
Transferring assets at less than it's fair cash value i.e. transferring your home to your child for $100.00 is either considered a taxable gift in excess of the allowed $12,000 annual exclusion or it's considered a "fraudulent conveyance."
There are certain exemptions sch as the adult child caregiver exemption . According to the rule, if your adult child lives int eh home and had takend care of your for the past 2 years, thus keeping you out of a nursing home, your home would be exempt from a Medicaid lien. In other words, the house can be kept and it cannot be attached by Medicaid to pay for the nursing home expenses.
Here is a link to an attorney that practices specifically Ma elder law.
http://lhamillattorney.typepad.com/main/medicaid/
The problem you have is - that you don't qualify for this exemption because your a grandchild under the laws. I specifically looked that up - I thought a blood relative could qualify - but that's not so.
As such you will have to contemplate another alternative if she needs to go into a nursing home or the house is at risk.
Attorney
19 years legal practitioner: real estate, collections, estate, civil, business, and criminal law