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How to Save Your Home from the Nursing Home

Written by: Ben Neiburger

Reputation Level 9

Estate Planning Nursing Homes

Posted almost 3 years ago. Applies to Illinois, 4 helpful votes, 0 comments

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General Warning

Medicaid Laws are different in every state. Therefore, to appropriately use this guide YOU MUST contact a local attorney who concentrates his or her practice in Elder Law.

Transfer to Healthy Spouse

There are certain situations in which transferring title to a house (that is, a house a Medicaid applicant uses or has used as his or her primary residence) are not subject to the transfer of asset penalties. These situations include cases in which the Medicaid applicant transfers his or her interest in the house to his or her. The first of these situations is to transfer the house to the spouse living in the community.

Transfer House to the applicant's child who is under age 21.

If there is a child of the medicaid applicant (not a grandchild, niece, nephew or anyone else) who is under the age of 21, then the applicant may transfer the house to that child provided the child resides in the house.

Transfer the house to a sibling.

The Medicaid applicant can transfer the ownership of the house to the brother or sister who has an equity interest in the homestead property and who was living in the home for at least one year immediately before the date the applicant entered a nursing facility or applied for or received certain governmental services,.

Transfer the house to a caretaking child

The applicant can transfer the title to the home to a child (not a grandchild or anyone else) who provided care (either nursing or support) for the applicant and who was living in the homestead property for at least two years immediately before the date the applicant entered the facility or applied for or received certain governmental services.

Be aware of other issues.

Some of the other issues that may affect the transfer include: capital gains tax basis, creditor issues, family harmony issues, real estate tax issues, title issues, and many, many more.

Check with a local elder law attorney

The results of making a house transfer incorrectly can be nothing short of absolutely catastrophic. Do not do this alone. See a local elder law attorney before you do anything. You can go to www.naela.org to find an elder law attorney near you.