My husband and I are purchasing a house, and my mother will be moving in with us. The house is in a 55+ community, so she has to be on the deed. She is gifting my husband and I the money for the downpayment/closing costs. My husband and I are the only 2 on the loan. We want to make sure that if something happens and she winds up in a nursing home, we wont have to sell the house since she is on the deed. I am not worried about the HOA if she has to go into a nursing home, but concerned if the nursing home will be able to take the house or our financial responsibilities, since she is on the deed. I posted this question before, and it was suggested that I add medicaid to the tags
This is a very complex issue. Seek the advice of an experienced Elder Law Attorney before you make the purchase. There are many different ways to title property. Some will cause great problems with the Medicaid; others will cause no problems with Medicaid.
Evan Farr is Certified as an Elder Law Attorney by NELF (National Elder Law Foundation), which is approved by the American Bar Association, and is a member of the Council of Advanced Practitioners of NAELA (National Academy of Elder Law Attorneys). Evan is licensed to practice law in Virginia, DC and Maryland, none of which have procedures for approving certifying organizations. NOTICE - Unless expressly stated otherwise, this communication: (1) is not legal advice absent an existing attorney-client relationship between us; (2) does not create an attorney-client relationship; (3) does not constitute an offer, acceptance, or contract amendment; (4) may contain confidential or legally privileged information protected by the attorney-client relationship and/or work product privilege; (5) is only for the use of the individual to whom it is intended by the sender to be sent, and if you are not such recipient, disclosure, copying, distribution or reliance upon this communication is prohibited; and (6) is not intended, and cannot be used, to avoid tax-related penalties pursuant to treasury department circular 230.
Whatever assets are in your Mom's name at the time of her passing are available to her creditors, the nursing home and Medicaid -- if she is on it.
It is recommended that you do a consult with a local Medicaid attorney to explore your options.
Your question requires you to answer more questions in order to provide an answer. Gifting the money for closing costs, etc. can be more problematic in the Medicaid context than having mom's name on the deed. You should consult with an elder law attorney to get the proper analysis of your situation.
Any answer provided in this forum is not offered as legal advice upon which you can rely without further discussion of the facts and circumstances of the particular situation. Sometimes things you may think are unimportant (and you don't disclose them in your posting) may make a big difference in correctly analyzing the issue. There is no substitution for a one-on-one consultation with an attorney, and you should not take this answer as such.
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