Hey all, my mom’s been accepted by Medicaid and just started her stay in long-term care. I’m trying to figure out the next steps to prevent Medicaid from placing a lien on her property. I have power of attorney, and I’m on the title of her house (but not the loan). I split caregiving duties with my step-sister. Any advice?
I think Medicaid has a 5-year lookback period, so any recent changes to property ownership might still be recoverable. Did you make any changes in the past few years?
Finley said:
I think Medicaid has a 5-year lookback period, so any recent changes to property ownership might still be recoverable. Did you make any changes in the past few years?
Yeah, I heard about that 5-year rule! I haven’t made any recent changes, but wondering if putting my step-sister on the title would help avoid the lien.
Finley said:
I think Medicaid has a 5-year lookback period, so any recent changes to property ownership might still be recoverable. Did you make any changes in the past few years?
If your step-sister’s been living there for a long time, I think she might qualify for an exemption even without being on the title. But best to check with a local attorney!
Are you planning to sell the property eventually, or would it just stay in the family?
Hart said:
Are you planning to sell the property eventually, or would it just stay in the family?
Ideally, we’d keep it in the family. But I want to make sure Medicaid can’t claim it down the line.
FYI, even if Medicaid puts a lien, they usually don’t foreclose. They just want to be paid if you sell the property later.
Quincy said:
FYI, even if Medicaid puts a lien, they usually don’t foreclose. They just want to be paid if you sell the property later.
Oh, didn’t know that! So if you keep it, Medicaid doesn’t get anything?
Quincy said:
FYI, even if Medicaid puts a lien, they usually don’t foreclose. They just want to be paid if you sell the property later.
Exactly. Medicaid would only get paid after the mortgage if you sell. If no sale happens, they don’t collect.
Maybe try proving your residency in the house. I think that can also protect against Medicaid liens?
Shai said:
Maybe try proving your residency in the house. I think that can also protect against Medicaid liens?
Yeah, I spend a lot of weekends there, but I’m not sure if that counts. Need to look into it.
Definitely talk to a Medicaid planning lawyer. They can help with the whole lien situation and any exemptions!
Auden said:
Definitely talk to a Medicaid planning lawyer. They can help with the whole lien situation and any exemptions!
Good idea! I’ll reach out to someone who specializes in this. Thanks for the tip.