given or sale?

Question

I live with my father for 12 years house under his name.This year he got sick often and some time he can't helping himself.
We thinking to send him to nusing home but not sure the medicare will take over his house or not,So he plan to give it to me My question is he better sale the house to me (very inexpansive) or he just give the house to me..
i don't have any idea about thi please help.
Jen e

Answer 1

Medicare does not pay for nursing home care & will not impose a lien. Your state's Medicaid program will pick up long term nursing care and it WILL impose a lien.

Generally, there is a three year look back period required by Federal law for state medicaid programs. Any transfer to you for less than fair market value made within that time will likely invalidate your father's eligibility for medicaid and will not avoid a lien. Indeed if you lie about it or try to hide funds received from a sale you may be subject to criminal prosecution. See a lawyer about elder care planning. Look in the yellow pages under "elder care."

Answer 2

First -- Medicare does not in general pay for long term care.

If you are actually talking about some other state run welfare program the rules vary. "Hiding" assets usually must be done a number of years earlier to be legal or effective. See a good lawyer in your state.

Gifting an asset to someone might incur a gift tax. "Selling" an asset at way below market value does not get around any rules. The fair market value will be determined and used.

As to the gift tax --The house could be sold for fair market value, the seller holds a mortgage, and then forgives the payments on a year by year basis. This may not have any effect on the welfare qualification however.

Answer 3

The same thing happened to my mother before she died. The medical bill collectors will take everything your father has if you do not put the house in your name. Best to go to a lawyer to do it all legally. He could legally sell you the house for any price he wants. But do it fast and now. In our case, my mother sold it to my older sister with the legal stipulation that she would live in the house until her death, and then it would go to my sister. Please do this right away, otherwise the medical bill collectors will come after the last penny of your father. God bless.

Answer 4

You can qualify for long term care in state subsidized homes but he can't have any assets in his name to qualify including property, cash, insurance, etc. Medicare isn't going to be the one to "take over" his house but he is not going to qualify in your situation. The website below has several links to organizations that assist seniors in dealing with their benefits.

Answer 5

You should have thought about this 3 years ago. They are going to take the house whether it's in his name or yours.