(PRWEB) November 13, 2012
Pozzuolo Rodden P.C., PHILADELPHIA ESTATE PLANNING ATTORNEYS, announces the release of "May My Mother Transfer Her Home To Me And Still Be Eligible For Medicaid"? Below is a sample of the first couple of paragraphs. If you would like to read more, please read the full article and other corporate law, or estate planning topics at http://www.pozzuolo.com/Pubs_Newsletters.shtml
I have been living in my mother’s home for 4 years and have been providing her day-to-day care and maintenance. Because she had a stroke and now is in need of more intensive care, I am admitting my mother to a nursing home. May my mother transfer her home to me and still be eligible for Medicaid?
The answer is yes, if you meet the “Caregiver Child Exception.” Generally, Medicaid will contribute to the long-term care of an individual if that person meets three eligibility tests based on (1) medical eligibility, (2) income eligibility, and (3) resource eligibility. Basically, to be eligible for Medicaid, you must be in a position of medical and financial need. An asset like a home may be counted in a person’s resource eligibility, negatively affecting that person’s eligibility based on financial need. A child’s first instinct may be to simply transfer her mother’s house to herself in order to remove that asset from her mother’s estate. Doing so would make it appear that her mother is in greater financial need of Medicaid. Unfortunately, the Medicaid officials are aware of this tactic and have imposed restrictions on Medicaid eligibility to prevent it.
Regarding transfers, the general rule is that a transfer of assets without compensation within five years of an application for Medicaid will cause a penalty period to be assessed. Within that penalty period, Medicaid will not be granted. Fortunately, for the daughter in the hypothetical above, there is an exception to the general rule, called the “Caregiver Child Exception.” The Caregiver Child Exception says that if the child has (1) resided in the parent’s home for at least two years prior to the parent’s entrance into a nursing facility, and (2) provided a level of care to the parent that allows the parent to stay at home and not have to enter into a nursing home, then the transfer of the home to that caregiver child does not create a penalty for Medicaid purposes.
In order to meet the exception, the daughter would have to show that she lived with her mother for two years leading up to her admittance to the nursing home and that she provided the required level of care.....
If you would like to read more, please read the full article "May My Mother Transfer Her Home To Me And Still Be Eligible For Medicaid"? and other corporate law or estate planning topics at http://www.pozzuolo.com/Pubs_Newsletters.shtml
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