Q: My father and I are joint tenants with rights of survivorship on a 2-family house. My father is 88 years old, and is not a well man. We went to a real estateReal Estate is land and anything permanently attached to it, such as buildings and improvements. lawyer and had the house put in my name.
If Dad goes into a nursing home, what is the lookback period for MedicaidMedicaid comprises state public assistance programs to persons who are unable to pay for health care. Title XIX of the federal Social Security Act provides matching federal funds for financing state Medicaid programs.? Would Medicaid be entitled to half of the equityYour share of ownership in a company. Stockholders are often referred to as equity investors, because they invest in the equity of a company. in the property? Would I have to sell the house?
A: Under new federal rules, the Medicaid lookback period is five years from the date of transfer. In other words, if Medicaid has to pay for your father’s stay in a nursing home because your dad is broke, the government could reverse any transfer of wealth from your father to anyone for the previous five years, if they suspect him of trying to hide assets or he transferred assets that could have been used to pay for Medicaid costs.
Would you have to sell the property? Maybe. It’s also possible the government would put a lienA Lien is an encumbrance against the property, which may be voluntary or involuntary. There are many different kinds of liens, including a tax lien (for unpaid federal, state, or real estate taxes), a judgment lien (for monetary judgments by a court of law), a mortgageA Mortgage is a document granting a lien on a home in exchange for financing granted by a lender. The mortgage is the means by which the lender secures the loan and has the ability to foreclose on the home. lien (when you take out a mortgage), and a mechanic's lien (for work done by a contractor on the property that has not been paid for). For a lien to be attached to the property's title, it must usually be filed or recorded with a local county government office. against the property that would have to be satisfied when the property is sold or refinanced down the line.
For more details, talk to your real estate attorneyA Real Estate Attorney is an attorney who specializes in the purchase and sale of real estate. or an estate attorney.
June 25, 2008.