Full question:
I bought a home for my mother. The home was sold and she went to assisted living. Two years later she now is going to skilled nursing. For Medicaid purposes can they count the money from the sale as part of her assets if I bought the home with my money? My mom provided no money for the home.
- Category: Medicaid
- Date:
- State: New York
Answer:
The answer depends on whether your mother held title to the home. If she had any ownership interest, the home is considered her asset, and proceeds from its sale may count as her assets for Medicaid eligibility. However, if the home was never in her name and she only lived there, the sale proceeds may not be counted against her.
For Medicaid, there is a 60-month (five-year) look-back period to assess asset transfers made for less than fair market value. If the home was sold for fair market value to an unrelated buyer, this may simplify her eligibility determination. If you transferred or sold assets below fair market value, this is termed a "disposal of resources," which can lead to penalties regarding Medicaid eligibility.
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, there is a one-month disqualification for Medicaid coverage. The penalty period starts on the first day of the month after the transfer or when she becomes eligible for Medicaid.
Certain transfers do not affect Medicaid eligibility, such as transfers to a spouse, a child under twenty-one, a blind or disabled child, a sibling with equity interest who lived in the home for at least one year before the patient became institutionalized, or a caretaker child who provided care for at least two years before institutionalization.
If your mother's equity interest in the home is $500,000 or less (or $750,000 in some cases) and she intends to return home, it may not be counted as a resource for Medicaid eligibility. The equity value is calculated by subtracting any liens or mortgages from the fair market value.
Eligibility for Medicaid is complex. For specific guidance, consider consulting a local attorney who can review your mother's situation and documents.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.