Full question:
My grandmother and I own a house that we live in together. She is on the deed as a Joint Tenant. My question is, Can medical, or the state put a lien against the house if she has to go into a full time nursing facility? If so What do I need to do so this does not happen?
- Category: Medicaid
- Date:
- State: California
Answer:
Medicaid is a federal program administered by states that helps with long-term care costs for those in need. It is not insurance but a public assistance program funded by taxpayers.
Regarding your question about whether Medicaid can place a lien on assets held in joint tenancy, it depends on your state’s definition of “estate.” Under federal guidelines, states can expand this definition to include any property in which an individual had legal title at the time of death. This can include joint tenancy properties.
In California, for example, the Medicaid program, known as Medi-Cal, can assert claims against joint tenancy property. This changed in October 1993 when Congress enacted the Omnibus Budget Reconciliation Act (OBRA '93), which allowed Medi-Cal to claim against any assets owned by a recipient upon their death.
If your grandmother has not yet applied for Medi-Cal, there may be ways to protect the house. One option is to transfer the property to children, but this can result in a loss of the step-up in cost basis for tax purposes. A better option may be to place the home into an irrevocable trust, specifically designed for Medi-Cal planning, which should be prepared by an experienced attorney.
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.