Well, I disagree with the other answers. The whole situation needs to be looked at by an experienced elder law attorney. Dad needs to qualify from an income test, asset test, and medical test before he can get Medicaid assistance. The answer is not a yes or no answer. But, if all those three tests are met and the "other facts" are correct, Dad CAN deed over his life estate without penalty. Again, not a yes or no answer, however.
You need to speak with an attorney who practices in Medcaid planning. A life estate is an exempt asset for Medicaid purposes. However, if your father deeds the property over to you, then it will no longer be an exempt asset and could very well trigger a penalty or disqualification of his Medicaid benefits.
I agree with the other answer. You need to consult with an elder law attorney. If your father transfers the property to you, it could be considered a gift. Uncompensated transfers, or gifts trigger a penalty period for Medicaid eligibility. There may be other ways to resolve your problem, and maintain your father's eligibility for Medicaid. An elder law attorney can help you explore those other options.
I agree with the other two responses. There is also the possibility that you can obtain a POA pr consent from your father and then proceed to rent out the home.
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