Protect Your Home From Medicaid Estate Recovery
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Families of nursing home residents that use Medicaid often discover that, after the death of the nursing home resident, the state seeks recovery of expenses from the estate of the nursing home resident/homeowner.
I just want the same healthcare I'm paying for those Senators to enjoy
Amen!!
@@0annonymous well you're incorrect every senator and two term house member gets lifetime healthcare as part of their retirement and they don't have to be 65 to be eligible their coverage starts upon their inauguration and continues until they die
Senators/Congressmen participate in the ACA. They have Medicare for health insurance after 65.
Completed lady bird deed
Health insurance does not cover long-term care.
We were very lucky. God sent us, an excellent nursing home, for my mom. Seriously, it’s a short wonderful story. The nursing home provided everything that is recommended for healthy living as an aging senior.
You say I can keep my house and be on Medicaid as long as I have only $2000. How can I pay mortgage, taxes, insurance, repairs and utilities with $2000? Thanks love your videos.
Audience from Louisiana is lucky to have you. Wish there is someone like you and passionate to share to help others in California
And Colorado
Thank you for these much needed instructive guidance videos. I sent one to my attorney to let him know where I'm getting my education from. :0)
I'm 60 and just discovered in the last 5 years why our healthcare system has been criticized all my adult life. My employer insurance was always adequate but, when my parents got sick the medicaid qualification nightmare began. The European and Scandinavian models now make sense and don't penalize anyone for the normal aging process. It's been an eye opening and heartbreaking journey.
They pay a lot more in taxes than we do. Nothing is free in life.
@@glockman9c I would pay those taxes rather than watch a lifetime of savings and assets go to a nursing home b4 you can qualify for medicaid.
@@mironkorzalko7761 - depends on your income and lifestyle. 50% income tax is not too much fun if you make $200k and pay $100k in taxes. It is all part of capitalism vs socialism. Some people prefer glass ceilings and government control and some people don't.
@@mironkorzalko7761 - trusts protect assets against medicaid.
@@mironkorzalko7761 - if you were paying 50% income tax your whole life, you probably would not have much savings and assets to lose.
The new view over the lampshade head. Brilliant!!
That was a eye opening video its a serious subject that most of us do not even aware of Thanks a lot
Thank you for all the information. It was very helpful. I live in Washington State. If I lived in your state , I would seek out your help. I hope I can find a knowledgeable attorney where I live. My mom did no planning and was in a nursing home for many many years which took her entire estate before she died a couple of weeks ago. I learned a lot about what not to do in old age. Thanks again!
She had somewhere to live and they took care of her. A plus.
A lot of good information explained in a simple manner. Thank you.
Indeed. Thanks
ચચ ચર્ચ છે તે
I cling to your every word. We put All our assets in a revocable living Trust❤️
That is all he could have said ,but no he went on and on.
@@davidkidder6705thanks for saving me time! :)
@21:00 mark - Home equity limit. Can they just reduce equity by taking out a loan, putting the proceeds in a protective trust?
Also, titling home in Lady Bird Deed /Enhanced Life Estate Deed evades Medicaid qualifications? Pls discuss this. Thanks for helping us all.
B
Your videos are so helpful in my transition for my newly widowed mom and setting up a trust
Happy they are helpful! 😎
@@americasestateplanninglawy1946 but what happens when a child has poa over Everything, and the parent thats in a nursing home gets Soc Sec and VA benefits deposited into their checking account each month. The child writes out the check each month to the Nursing Home. The Childs name is first on the Checking account and the Parents name is Second on the Checking account. What happens to all the money left over in the checking account?? Does it now belong to the child or does it all have to be paid back. Thanks so much
I am in Florida but great information thanks
Thank you for your time, I subscribed to your channel 👍🏻
There is a five year clawback period on the sale of a home when someone is in a nursing home.
One item that can be purchased is funeral expenses or possibly cemetery plot purchases up to $10,000.00.
If your home does not get more than $25,000.00 in profit they won’t bother that amount in Georgia.
If you have any idea someone is going into a nursing home in the next five to ten years you might want to put the property in someone else’s name.
👍
I have a friend that doesn’t understand all this and spoke to an advocate and they said that there was nothing to worry about but the fact is when their family member passes away I know the state is going to come for their money they already receive Medicaid hopefully this issue will be addressed in your video but if you have any links to a New York State Medicaid lawyer I would appreciate it thank you very much
Thank you your article is very helpful
What do you do when are tax exempt & someone has stolen your identity & intelligence
Property??
I really like your clear answers.
When talking about the homestead exemption u make mention of something to consider when transferring home to trust to keep the homestead exemption but I can’t understand what term u are using in the video.. Could u tell us what that is called?
What about the community spouse their rights to the ownership of the house, if the house is owned by a husband and wife then after they have both passed away, does Medicaid claim 100% of the house from their heirs or 50%?
Great info, love it keep up the good work.
Thank you for a very informative article on trust.
Glad you like DA! 😎
But It go
@@americasestateplanninglawy1946 Can you take a look at Barbara's question? It would probably help many!
Please explain the difference between revocable and irrevocable trust.
May u stay healthy and wealthy
we where trying to get my mom to o a Quit CLaim since my sister lives on her farmette in a modular
I’m thinking of these trusts and what if my home still has a mortgage? What does the bank do in this regard? Who owes the rest of the mortgage?
Could you explain the Landbird Deed?
With the Florida lady bird deed, you give yourself a life estate interest in your property. A life estate is a right to live in the property until your death.
When you pass away, the real property passes to your beneficiaries designated in the lady bird deed, called the remaindermen.
The lady bird deed works similarly to a pay-on-death provision on a bank account. With a pay-on-death account you can spend the funds in the account during your lifetime and change the beneficiaries at any time, and the beneficiary is only entitled to what is left on the account when you die.
What makes Florida lady bird deeds so valuable is that you are able to retain certain interests in the real property even being the life tenant. I will go over those rights in the next section.
Some terms used in this article are as follows:
Grantor: the person(s) that transfer the property right into the Lady Bird Deed.
Remainder Beneficiary: the person listed under the Lady Bird Deed to inherit the property once you have passed away.
RESERVED RIGHTS OF THE LIFE TENANT WITH A LADY BIRD DEED FLORIDA
You as the life tenant reserve yourself the right to sell, encumber, and otherwise consume the real property during your lifetime without and knowledge or consent of the beneficiaries.
You may also change the beneficiaries/remaindermen at any point in time or even revert the whole interest back to yourself.
An example of the retained rights in a Florida lady bird deed is as follows:
The Grantor reserves to herself, as Life Tenant, an enhanced life estate in the Property, being the exclusive possession, use and enjoyment of the Property and its rents and profits, without liability for waste, and specifically reserves to herself the following rights, exercisable without the joinder of the remainder beneficiary and with or without consideration: to sell, lease, encumber, or pledge the Property; to manage or dispose of all or part of the Property or to grant any interest in the Property, all by gift, sale, or otherwise; to retain any and all proceeds generated by a sale, lease, or encumbrance, as the Life Tenant in her sole discretion decides; to terminate the interest of the Grantee by the exercise of any right retained in this deed, including the right to cancel this deed by further conveyance to herself or to anyone else.
DIFFERENCES BETWEEN LADY BIRD DEED AND ORDINARY LIFE ESTATE DEED IN FLORIDA
Compared to an ordinary life estate deed, the lady bird deeds allows you to retain all the rights of fee simple ownership in a real estate property as outlined above.
The second major difference between a lady bird deed and an ordinary life estate deed is that your beneficiaries have no vested interest during your lifetime. In an ordinary life estate deed, the beneficiaries/remaindermen have a vested interest and they are expected beneficiaries of the real property.
With an ordinary life estate, the beneficiaries interest cannot be given away or sold without their consent. However, with a lady bird deed you can free change the beneficiaries/remaindermen at any point in time.
The third major difference is that with a Florida lady bird deed, you do not have a duty to preserve and maintain the real property for the benefit of the beneficiaries. You may free consume the real property, sell the property without the beneficiaries knowledge or consent, and will not have any liability to the beneficiaries.
BENEFITS OF A LADY BIRD DEED FLORIDA
There are four (4) major benefits of a lady bird deed in Florida: 1) probate avoidance; 2) preserve homestead benefits; 3) preserve Medicaid eligibility; and 4) step-up in basis at your death.
Your talking about doing a Life estate at least 5 years before apply for Medicare but what if you also have ira accounts? You still aren’t eligible unless you transfer your ira money to someone else.
Question: Can Medicaid still make a claim on the residential real estate property if the person that passes was in a nursing home, but the jointly owned property was Joint Tenancy with Right to Survivorship (not spouse)? We own one property, but have two residence on it. I know that other creditors can't because it doesn't go through probate and isn't part of the estate, but I am not sure if the government can override this. ?
Thank you. We appreciate you.
What is the difference of giving money to a Trust or, with certain accounts, a "Transfer on Death" for the children?
What if the parents add their children names into their home property?
Not good enough
What if the property is owned by joint tenancy by mother and daughter from 15 years ago.
My husband already has ssi benefits and Medicaid our house under both names if we put our house to trust account will he lose his benefits?
Word to wise: Keep yourself healthy to avoid chronic disease and thus nursing (vast majority of chronic illness is lifestyle related!), and keep your loved ones from having this dilemma.
Must be nice
If only that were true. People just become elderly and lose the physical ability to do things for themselves.
You must be very young.
Are you a scientist that studies these things? Are you sure it is not in our genes or DNA? Your wisdom needs to include some compassion and maybe do more listening than talking. Here is wishing you good health until you are 120 years. I see many when the body gives out it does, you see it in your skin and your bones and it is down hill from there. There is no fountain of youth.
Staying healthy is important, but it doesn't save you from crippling accidents, cancer, stroke and countless other health catastrophies.
If you have set up all your checking and savings accounts as a joint account with your child and not your spouse can MEDICAID CLAIM THAT MONEY? And if your house is in both parents names but TOD to a child is that home then exempt from Medicaid and or taxes? There is no will or trusts in either case.
I’m curious on something like that too. Like I’m a caregiver for both my parents and my mom added me on her accounts so I would have a debit card to her account in my name, since I do basically all the grocery shopping and more for them. But we’re kinda worried that, if one or both of them would need to go into a home, eventually needing Medicaid, would they come back for any money used on the card under my name, from her account, even though it was for Their needs. That would be Highly Regrettable. Anyway, good luck to you! :)
Thank you so much for very helpful information!
I like your video, could you please talk about California medical laws.
Hello and thanks for the helpful videos, I have a couple of questions, 1) my mother is 88 years old and has late stage dementia, she really needs to go in a Medicaid Nursing Home and was prequalified to get help, but there is in family fighting going on as we were taking turns taking care of her now no one wants to do it anymore. Her house is payed off and is in her name and mine, not anyone else as I paid her for the house when she bought it in 2002, so there is a quit claim deed with her and me on it that I had a local lawyer do. I am also permanently disabled by Social Security since 2008, what do I need to do to protect the home from the Medicaid Asset Recovery and can I put her in a Medicaid Nursing Facility if my sister has power of attorney and we are not talking to each other anymore, any help would be much appreciated.
What was the purpose for your quit claim deed?
Thanks for the information
Re social security and pension how does this play out for the one seeking Medicaid vs the health spouse?
My husband is in long-term care almost a year under Medicaid. We have less than 15,000 in an IRA, which we spent down, we own our condo. I still live in the home his spouse. I was informed by an elder attorney over the phone that I could take his name off the home, so Medicaid couldn’t Attach escrow, should my husband pass away. I do have power of attorney he does have mild dementia.
I would double check that. He is giving away asserts.
My father suffered a heart attack back in Feb he is been on Medicaid had surgery but is now September and he has been on Medicaid for that long. His health declines he is now on hospice. I printed out a living trust and got it notarized where he leaves his home to my mom worth about (340k) and I’m the trustee. Will I need anything else to protect or avoid probate ? Thank you I’m in AZ
Just watched your video and it was very informative. QUESTION. Mother-in-law just went into a nursing home within the last year and got Medicaid and father-in-law still lives in the house. Can he sell it to his granddaughter? The granddaughter wants the family home that her grandmother and grandfather built. Is it not worth it now?😞
Not in our state, if you have entered into nursing care and have not made arrangements the five years ahead as he states, then it does not matter, medicaid will recover their money no matter who owns it, and will put a lien on the house when the person goes into the nursing home for this exact reason, most likely you wont be able to sell, the Father in law is able to live in it for as long as he has time remaining with no issue.
Good question. I will add a consideration…I wonder IF father-in-law had an adult child move in with him for at least 2 years, which would be a caregiver for him during that time, of which you could get a doctor to sign the affidavit, like mentioned in this video, saying that He would have needed to be placed into a nursing home IF it weren’t for the care of that adult child living with him…then perhaps the home could still be saved. Or maybe that gets far more complicated where something like Half the value could be attributed to him and be saved if those criteria are met, and half would still be recoverable by Medicaid on the mother-in-law’s situation. I’m no expert, just sharing some thoughts. Good luck!!
Thanks, I appreciate your videos. Some business advice hire a decorator to redo your office to add some color and make it look less mortuary
I am single and live alone. I own my home and it's contents, I also have a car. I don't have family or close friends to leave these items to. I also don't have a Executor or Power of Attorney or anyone else to leave all the things I own. I will be making a new Will and I don't know what to do. I have a DNR at the hospital. I also have a checking account and a annuity and some cash. This has been on my mind for years. Can you give me some advice. Their have to be others with the same problem.
What about real estate n a LLC with family
Does it have to be a certain type of trust to protect the home from Medicaid recovery?
Yes what kind of Trust we would like to know?
My grandfather went into nursing home.. he died in nursing home… we were told he owed alot of money to nursing home so the state took his house well years later… noone has taken it. It sits there untouched for many years and its still in my grandparents name… thoughts??
That is what I need more information on ( 5 yr penalty for transferring $ to family every month .)
i do love your youtube videos. but i felt there was a bit of missing background, or perspetive, when you got into trusts. i think you were saying that some trusts can work for protecting the home but some won't. but right there is where i was waiting for an explainer to say a bit more details about these are the types of trusts and these 2 or 3 work but these others won't really help with the home protection. but really great work overall.
Would transferring it to a granddaughter that has lived on the property be sufficient to not be penalized by Medicaid
No, to be exempt, she must named be on the property deed.
Good question!
@@lr6844 are you sure about that? Seem that is only if sibling. Granddaughter not mentioned in caregiving, just child.
@@jackfrosty4674 The relationship of the person receiving the asset or even legally sharing the asset (house) does not matter, only that the transaction is completed at least five years prior to the of need of Medicaid. I guess I should have clarified at the beginning of my comment, the same thing that Mr. Rabalais had said in his video, that the assets (gifting of money, house) must have been completed at least five years prior to applying for Medicaid, but check with your own state's Medicaid requirements. The Medicaid rules vary from state to state.
@@lr6844 but is a loop hole. IF a child and take care of person and live at home of patient for two years and can get doctor to sign an afadavit saying that then if less than five years can have home signed over and medicare not take it. A loophole. Are a few.
Do the allowed $15000 annual cash gifts count as transferred assets that trigger the medicaid five year waiting period?
I believe they will not allow that during the 5 years.
It counts as assets. When they do the look back period of five years. Varies some by state the time frame is reported.
Why doesn't states require long term in order to avoid this chaos. Sounds too much. I am getting long term care, oh boy😯😣
Thanks
What about a Land Trust set up under an LLC, in a state like Wyoming where the listed owner is the state and not the individual?
Also hit the "bell" for notifications.
I had a heart attack thenopen heart surgery and had no insurance got medicaid but now looks like theyll take my home when I die I will be quitting all my medication and will not see anymore doctors if I would have known i would have refuse help just wanted to leave my daughter my house IM NOT RICH BUT THAT a sin in the us
What about a trust? Is a trust exempt?
I really need your help and advice. First I would like to thank you so kindly with your humble words of wisdom. My aunt is 89 years old and has dementia and truly needs care she received Medicare already and owns 2 houses and land in 2 different states.I founded a church established nonprofit at the beginning of this year. Could I donate her home and land to the non profit church so that she could receive Medicaid in order for her to receive home care? Please help me.
Medicare is completely different from Medicaid, but Medicare does provide for home health care of Medicare-eligible people without income or asset limits. As long as her primary care physician writes an order for home health care and she maintains her homebound status (ie: doesn't go shopping or to doctor appointments without the aid of a caregiver). There are other qualifying requirements for home health care, but her doctor or a Medicare-certified home health care agency can determine eligibility. I hope this helps you.
What happened if mother dies before the 5years transfer, will never go to nursing home?
Well you could try and sell your interest in the home around 75-90% with life time residency right's. My two bits.
I was added as a survivor's will to my parents home. Is my home protected from MER?
I have been the sole caregiver for my mom since 2018 taking care of her at my home. She has stage four lung cancer and dementia. She owns a home in Virginia. Her heath has declined and either needs home health care at my home or go to a nursing home, how do I keep her home and not let Medicaid not take the home when she passes?
The house deed is in my name and has been for over 5 years
If the house is in your name (i.e., your name alone on the deed), then it is no longer your mother’s asset and would not be subject to Medicaid estate recovery.
The look back period is five years at most. So should be okay as said is was more than five years. However the capital gains tax on the value of the home since she bought it and what it was worth when you received it will be taxable. If have home as main residence two out of five years before sell home will exclude the stepped up value up to individual exemption of 250,000. - If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income, or up to $500,000 of that gain if you file a joint return with your spouse. Publication 523, Selling Your Home provides rules and worksheets.
If you withdraw from bank account how long before you can qualify for medicaid and leave 2000.00?
May home still has a mortgage, can I change my deed to show my son own's 99% and my son and I and my spouse, if living or do a quick claims deed. Explain what I can do to protect my home?
Look at lady bird deed or Grand Tour Trust.
Can you tell little common laws of Maryland state ..grantors trust is living trust
You can find good help for $20-$30 per hour for seniors. Sounds expensive until you price out highly rated nursing homes. 12 hours per day, 5 days per week, at $25 per hour = $6500 per month. It all depends on one's situation.
Many in nursing homes lie in bed all drugged up until they pass. Why is this worth $6000 per month.
Yes I think so too! You have to visit very frequently to get the right or decent amount of care.
Such a rip-off. They don't give their patients 6500.00 worth of care a month. The majority are neglected daily 😢
God bless you
Can medicaid file a lien against the property of a nursing home resident receiving medicaid and then dies if the resident had life use of the house she lived in? The resident signed a life use contract with all 5 children who also signed contract. The resident also signed contract with the 5 children on income property. This was done over 10 years ago in New York State. Could the state be entitled to 1/6 of the asset value of the income property? Does each of the five children have to pay capital gains tax? The value of the home is around $300,000 and the value of the income property is around $160,000. Is the resident living in the home with her signature on all property with all 5 children eligible in the first place to be receive medicaid?
How much is it to open a revocable living trust and is there an annual maintenance fee
Good information.
thanks...good start for me.
What about automobiles? To get to the $2000 rule does my car need to be transferred to the trust? Then if I want to get a new car - does the trust need to buy me a car? What about car insurance? Who pays car insurance for me?
What about the transfer on death?
That five year look back period a concern
Laws are different in every state. NC is very "hostile" to estate planning according to my advisor. Just hope you don't have to go into a nursing home unless you have LTC insurance.
I’m still a little confused about a life estate interest deed to the children while I would hold a life estate interest in Florida. Would the property be be protected from Medicaid?
You have to live with them for 2 years after you have transferred it to them
@@dondon98 And get a doctors affidavit saying that and be a resident in house and maybe state.
what about life insurance cash values and annuities
some annuities exempt and some not. need a special trust.
preplan your funeral and purchase funeral insurance. To certain limit is exempt.
My like button turns black now, not blue.
My like button turns white.
Thank you
How about discussing we 'lower' income...An old mobile home and only 200$ usually left in bank, after bills paid, each month.
He laid it out in the video. Older vehicle, exempt residence, and under 2k in spendable assets.
No second vehicles, homes, no ira or other investments. The system only punishes you for having something.
In CA, if you accept state insurance over age 55, they will recover any assets first for whatever MediCal services received. Your bank account, vehicles, jewelry even food all belong to the State.
What are legal options, besides spending it all?
@@pinkelefant4ever Do not use the medicaid. Stay home and get hospice and home care. Pay out of pocket or trade or barter for home care services. Get a contract with a caregiver and government considers are paying for a service.
@@earlscheib7754 That's so sad.
@@jackfrosty4674 getting those aides (majority are tweekers and/or opportunists) are paid for by medicaid. Trading or bartering with these people is basically dealing with the devil. One got fired and kept coming to do chores, eat and shower. They make sure those pain pills are given. There are a few honest ones, but they are valued by the people who have them. There's no accountability.
Why can't these people have a ring type surveillance in the house and get rid of the criminals.
I learned a lot. I never heard 😅about the surviving spouse.,would they be ok to have the house til death, or sell it off?
What about life Insurance?
Good Question
If you put your home into a Revocable Trust five years or more before going into a nursing home can Medicaid file against that trust for asset recovery? Does the trust have to be Irrevocable?
Depends on your state re timing, etc.
This is a good question and I wish he would answer it. Maybe there's too many "if's"...
Do you do remote consulting? I live in SC and have some questions regarding the exceptions to home transfer issue.
I have a reverse mortgage. How will this affect my
How much does it cost to put in a revocable or irrevocable trust? Is it something you can do yourself online??
I would use a lawyer
If a home is protected from medicare for a child taking care of a parent in the home to keep them out of the nursing home then may a spouse also qualify with that rule?
Spouse have own rules.
What if you take money and buy $300K painting, a diamond, or Louis XV table?
I love your videos! Great content!! We set up an irrevocable trust for my mom (it cost us $5K for atty.) She is currently in skilled nursing facility and we are way beyond the 5 yr look back period. She could qualify for Medicaid but at this facility, all Medicaid rooms are semi-private and mom doesn't want to be in a room with someone else! She's too good to be there but not good enough to be at home alone! We are selling 30 acres to pay for her care, which will only last us about 2 years.....the house will go next. Atty here in NC says we are doing all we can. Do you have any other advice?
Wow. Best wishes to you!! Thank you for sharing.
Caregivers should take a vacation. Sound like you need one.
Call him , maybe he can point U in a direction U Need.
Bring her home! It’s so corrupt how they take it.
store made. I transferr my home to multiple kids...are they all responsible equally. Like if one kid goes bank rupt what happens to the house. Does it get split to cover that one kids share?
Should have used a trust.
What happens when someone sells their home before they die or go into a nursing home? Do the estate recovery rights still apply or would the profit from the home just make them ineligible for Medicaid until they spend down? What if they use the profit to buy something else?
Sorry, clarification- the person is 67 and has Medicaid already and gets community services (homemaking, caregiver, etc.) through the state (Colorado)
Hi thank u for ur up load
Please how much is a stage cost for asset protection or irovercorble trust ?
This was very helpful, thank you!
Oh I wanted to ask you if you go into the hospital just for a week or so but your release to go home will my Medicaid insurance hold my child responsible to pay that bill if he's staying with me?
This guy is good. Good talker, Bills by the hour. Typical attorney. He can say it in 10 minutes but he take 1 hour. Dude, just say it. Done, over..the end. Thanks.
You are discussing on medicate what about Medicare policy?
No problems.
What is the criteria for capital gains tax ?
I don’t like Medicare and want to get out from under it! What is the best way to do this? Can I just quit having it taken out of my social security and not paid to them?