John Doe (real name withheld for confidentiality purposes)
Mr. Doe owns a home, contiguous farm land and a beach house. He wants to protect the real property from Medicaid estate recovery if he should ever receive benefits at assisted living or skilled nursing levels of care. Unfortunately, Mr. Doe suffers from Parkinson's disease and does not expect to make it five years before needing to access benefits for long term care through Medicaid.
Mr. Doe's medical condition makes transfer of the real property through traditional means difficult, as those transfers cause a sanction period. Likewise, he has an eligibility problem with excess contiguous land value and the additional beach property. Therefore, something must be done to exempt these properties from a resource calculation.
Mr. Doe transfers a small interest in the contiguous land and the beach property to his child(ren) to gain eligibility for Medicaid. He then transfers a remainder interest in all that he owns in all three properties to his child(ren), retaining a power of appointment to change the beneficiary prior to death. Where there is some risk with this deed if laws were to be changed, the second deed accomplishes the protection of the properties under current laws from Medicaid estate recovery.
As with Mr. Doe, if you have real property that you would like protected, I can help you evaluate your options for protection and eligibility.