Will the Nursing Home Take My House?

Article submitted by Alan J. Ackerman, an attorney with offices in Trevos and Philadelphia.
For more information, he can be reached at 215-245-2250.

Usually the very first question a new client will ask at our first interview is "will the nursing home take my house?"

There is so much confusion on what will happen to the family home. Really, there are two separate issues: (1) how will my home affect my being able to qualify for Medicaid, and (2) what will become of my home after I pass away?

The fact is that your personal residence is referred to as a "non-countable" asset, meaning that the Department of Public Welfare (DPW) will not count the value of your home in determining if you qualify to receive Medicaid to cover the costs of your nursing home stay. However, after you would pass away the DPW will place a Medicaid Lien on your home to recover the payments made to the nursing home.

Too many senior citizens make the terrible mistake of simply gifting their home to their adult children in anticipation of having to go to a nursing home. This places them at risk. The child could be faced in the future with bankruptcy, divorce, or simply have a falling out with the parent. If none of these matters occur the senior citizen is still faced with the loss of eligibility to receive Medicaid caused by the gift of the house. Let's assume the home had a fair market value of $120,000. Based on government formulas the senior citizen would not be eligible to receive Medicaid for twenty (20) months for the date of the transfer of the house. It doesn't matter if the Deed said the house was sold for $1.00 or for any other amount. The government is going to look at anything less than the fair market value as a gift and deny Medicaid payments.

A skilled Elder Law Attorney will be able to employ a number of legal planning alternatives to assure that the house, or its value, is preserved, with the minimum period of ineligibility imposed, and that Medicaid liens are avoided at death.

Remember, the first and most important matter to you, and to your Elder Law Attorney, is that you receive the best possible care and qualify for all possible government benefits. In addition, your Elder Law Attorney will help you to preserve your home and other assets for your children* and grandchildren.

Don't let the government take what it took you a lifetime to make! Call today for a no-obligation consultation to find out what needs to be done to save your home.

* Will your children be forced by the government to pay for your nursing home stay? Speak with me today to find out.