Do I need to sell my aunt's home in order for her to pay for nursing home?
My brother has been living with and taking care of my aunt for the last 20 plus years. He is 57 and slow. She is 86. Her Social Security income is $274/mo. with $224/mo taken out for suppl. insurance. My brother is on SSI and get $674/ mo. His money supports them. The house is in my aunts name. It is the only thing she owns. Very little in checking/ savings. She has dementia and may need to go back to a nursing home. She was there recently for rehab from a broken hip. She can not go back for 3 months because she reached her 100 days that Medicare and supp. insurance paid. Do I have to sell her house in order for her to receive long term care and qualify for medicaid even though the house is my brother's home and has been for years?
Attorney answers (2)
Paul Arnold Nidich
Reputation Level 11
Answered over 2 years ago.
Elder Law Attorney in Cincinnati, OH.
I assume from your question that your parents are no longer alive. If either one was qualified for social security, your brother should be receiving Disabled Adult Children social security benefits which are higher than SSI. After two years, he would also qualify for Medicare.
Does your aunt have a guardian? I believe, but am not entirely sure, your aunt can transfer her house to your brother, because he is disabled, without it affecting her medicaid eligibility. You need to check with an Elder Law attorney in Spokane.
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Matthew M Luedke
Reputation Level 9
Answered over 2 years ago.
Elder Law Attorney in Spokane, WA.
The answer is maybe.
Your aunt may be eligible for Medicaid. In Washington to qualify for Medicaid she must meet a two part test. The first part of this test is that she must be physically in need of care and be in a facility that contracts with Medicaid or at home and have a COPES (Community Options Program Entry System) in-home care giver in place. The second part of the test deals with financial assets. In particular she must have less than $2,000 in countable resources and not be in a penalty period created by a gift. A modest house will not be counted against her for qualification purposes, however it may be liened for the total value of the services that were provided by DSHS under the Medicaid program upon her death.
She may gift it to a 42 USC 1396p(d)(4)(a) trust for the benefit of your brother. This would not count as a gift against your aunt and will not be considered an asset of your brother. Upon your brother's death, the house could be liened for the value of services rendered to your brother. This is a good option if your primary concern is that your brother have a place to live for the rest of his life and you don't care about losing the house at his death.
If your aunt has failing health you may consider either loaning her money (with promissory notes secured against her house) or taking a loan against the house, however this would likely not produce a better benefit than if she applied once she met the above criterea and accepted the lien. Upon her death your could then choose to sell the house or pay the lien, but in general the lien amount will be discounted from the private pay amount that you would otherwise have been paying. Assuming she does not live long and that she has left the house to someone other than your brother (i.e. to a non-(d)(4)(a) testamentary special needs trust or to you) this would save more of the house than if it was transferred to the (d)(4)(a) trust.
This answer is really factually specific. For a more complete answer you should consider discussing this with an Elder Law attorney in person.
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