Medicaid is the only viable long-term health care insurance for many individuals. If your older parent has to go to a nursing home, your parent (or you) would most likely have to work with the Medicaid department in your state to apply for financial support for the nursing home, unless he or she has considerable assets. This article addresses the expenses of nursing home care, what services the elderly person would use to pay those expenses, and what might be excluded so that the expenses do not fully impoverish the parent or other family members. You want to ensure that your older parent gets the much-needed treatment that Medicaid will pay for while keeping the property that your parents have spent a lifetime accumulating at the same time. While having the treatment your elderly parent needs, you can learn how to protect your parent’s house.Learn more by visiting Wills and Trusts Attorney Centerville
For lots of reasons, several individuals would seek to keep their parents out of a nursing home. The cost is one of the major factors. Home treatment for nurses is costly. Expect to pay from $35,000.00 a year to $150,000.00. Real costs rely on many variables, including the quality of treatment and location offered. It usually costs more than other areas in the northeast and in California. The average period of stay is about 2 1⁄2 years or 30 months in a nursing home. The general rule is that your parent must spend all his or her money except for the last $2,000.00 before Medicaid can pay.
Family members also expect that Medicaid will pay for the health care expenses of their parents, but do not want Medicaid to take all the resources and assets of their parents to pay for it. Some family members move property to another person’s name from their parent’s name so that Medicaid will not seize the property. Unfortunately, Medicaid has a provision that states they can look at any property owned by the elderly parent for the last 5 years and seize the property to pay for nursing home expenses from the new owner. This is called the “5 year look-back era.” People don’t prepare for a parent’s nursing home stay five years in advance, so moving property from the name of your parent won’t work to prevent Medicare from taking the property.
In certain cases, if the other partner wants to live in the family home, the family home is not something that Medicaid can take away. If the nursing home patient has the subjective purpose to return home, even if there could be no reasonable chance of going home, Medicaid will also not take the family home in the case of a widow. Sometimes, all it takes to create the hypothetical intent to return home is for your elderly parent to sign an affidavit indicating that after regaining good health, he or she plans to return home. This protects the house while the parent stays in the nursing home, but Medicaid will take the house to recover expenses after the parent’s death unless steps have been taken to stop it.
Often it is possible to use a simple tactic to avoid Medicaid from taking the home of your widowed parent when he or she dies. The approach is referred to as a property of existence. It’s quick to do. Your parent has to sign a new deed for his or her house in addition to the affidavit of subjective desire to return home. On the death of your parent, this new deed gives the house to the beneficiary while your parent maintains possession of the house for his or her lifetime. After the death of the parent, Medicaid will typically not take over the house until the beneficiary acts quickly to complete the transition of the house title from the parent to the beneficiary. That is because Medicaid typically only intervenes to take the house in a probate, and the above mentioned strategy prevents probate.