Can Medicaid place liens on property after a deed revocation?

Full question:

2 years ago my mother signed a transfer of deed for her property to me and gave me instructions on how to divide at her time of death she has had 2 strokes from July and August and now is incapable of making decisions but i have just learned from a sibling that she had the deed revoked to go back to the heirs of estate with no instruction on how to divide and the main question does this now leave the property in jeopardy for any medical institutions or Medicaid to put liens on. any info would be appreciated this land is in New Mexico.

• Category: Medicaid
• Date: 04/07/2025
• State: California

Answer:

Before qualifying for government nursing home assistance, there is a 60-month look-back period. This period examines if assets were transferred for less than fair market value or placed in a trust to qualify for nursing home programs, which could deprive the state of available resources for long-term care. Transferring or selling assets for less than fair market value is known as a "disposal of resources." Under the Deficit Reduction Act of 2005, the look-back period is five years for transfers made on or after February 8, 2006. For every $4,300 disposed of, you may be disqualified for one month of Medical Assistance coverage for nursing home care. The penalty period starts on the first day of the month after the transfer or when you become eligible for Medical Assistance.

Certain transfers do not affect Medicaid eligibility, including transfers to a spouse, a child under twenty-one, a blind or disabled child, a sibling with an equity interest who has lived in the home for at least one year, or a caretaker child who has lived in the home for at least two years and provided care. If a person's equity interest in the home is $500,000 or less (or $750,000 in some cases) and they intend to return home, it may not count as a resource for Medicaid eligibility.

Creating a life estate without the power to sell may be considered a disposal of a resource and could disqualify you from Medical Assistance. If the life estate was created long enough ago that there is no penalty, it may be a countable resource but valued at $0, thus not disqualifying you. A life estate with the power to sell does not count as a disposal, but the house's market value will be considered an available resource.

Fraudulent conveyance transfers can occur if a transfer is made with the intent to defraud creditors or without receiving equivalent value in return. The specifics of your situation depend on the current ownership of the property. It's advisable to consult a local attorney who can review all relevant facts and documents.