At 85, you can’t shield the home the way you might be able to earlier in life. Medicaid has a 5-year lookback period (42 U.S.C. § 1396p(c)(B)(I)), which means any transfers or gifts made in the last 5 years are reviewed. If your aunt applied for Medicaid and had transferred the home within 5 years, it could be considered an improper transfer, and Medicaid may impose a penalty period or try to recover the asset.
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How do we protect a home if my 85-year old aunt is going into a nursing home?
Are you currently receiving any government benefits or assistance that could be affected by owning a home?
Just a bridge card only $26 a month.
Is there anything else the lawyer should know before I connect you?
This is for my 85-year-old aunt. She has no children or spouse.
Hello, I’m Stephen — an attorney here to assist. I’m sorry you’re dealing with this situation. Let’s talk about what can and can’t be done at this point.
At 85, you can’t shield the home the way you might be able to earlier in life. Medicaid has a 5-year lookback period (42 U.S.C. § 1396p(c)(B)(I)), which means any transfers or gifts made in the last 5 years are reviewed. If your aunt applied for Medicaid and had transferred the home within 5 years, it could be considered an improper transfer, and Medicaid may impose a penalty period or try to recover the asset.
OK, thank you. So basically, if she were to go into a home, they would take the home after her passing?
Not exactly take it — but they’d likely place a lien on the home through Medicaid Estate Recovery. That lien would need to be paid back after her death, often through sale of the home.
So yes, unless protected, the home’s equity would be used to repay Medicaid for care expenses. But the state does not want the house itself — they want the money.
So if we sold it now, they’d take that money, right?
My brother’s name is on the house and has been. So would it go to him, or would they still want the equity out of it?
If your aunt’s name is no longer on the deed, and it was transferred more than 5 years ago, then Medicaid cannot touch it. It would be considered your brother’s asset — not hers — and would be safe.
However, if the transfer was less than 5 years ago, it may be considered an improper gift, and Medicaid could penalize her or seek recovery.
I’m not sure how long ago that was. If it was past five years, would that make a difference?
Yes. That’s the critical part.
The 5-year lookback period begins when she applies for Medicaid. If the transfer was recorded more than 60 months prior to that, then the home is legally out of her estate and not counted. Medicaid cannot place a lien on it or recover its value.
That document would be from the register of deeds?
Correct. You can verify the transfer date with your county’s register of deeds. If your brother is the sole owner on the deed and it’s been recorded for more than 5 years, you may have protected the house just by luck — but it still works.
Ok, thank you.
You’re welcome. I hope that helps. Medicaid planning can be tricky, but timing is everything. If you have more questions later, I’m happy to help. Take care and be well.
