[VA] Can we transfer or protect my mother-in-law’s house without risking her Medicaid benefits?
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Virginia has a 5-year Medicaid “look-back.” A transfer for less than fair market value during that period is treated as a gift and triggers a penalty (42 U.S.C. § 1396p(c)).
- Penalty length ≈ (home equity ÷ average monthly nursing-home cost). The $60k mortgage doesn’t avoid the gift rule.
- Limited exceptions may apply (e.g., caretaker child exception if you lived there and provided care for 2+ years pre-institutionalization). Other narrow exceptions exist.
Medicaid Estate Recovery: After death, the state can seek reimbursement from assets, including the home, unless an exception applies (42 U.S.C. § 1396p(b)).
An elder-law attorney in Virginia can assess equity, exceptions, and tools (e.g., specific deeds or trusts) and plan against estate recovery. Getting counsel early helps protect benefits and the home.
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My mother-in-law wants to give us her house but owes $60k on it and receives Medicaid. We’re lost on the best option since she’s already on Medicaid.
Anything else we should know?
Yes.
I’m Jon, an attorney. I’ll help clarify your options. Could you share her overall financial situation besides the house? Any other assets or income?
She gets disability; her state pension starts at 50. All she has is the house. She had a bad stroke; family helps care for her.
Since she’s already on Medicaid, timing matters. When did she first start receiving Medicaid, and when are you hoping to transfer the house?
She has no stocks, no 401k, no cars—just the house. We're in Virginia.
Got it. Anything else to add before I draft an answer?
Nothing else. We don’t want to mess up her Medicaid but want the house secured.
Virginia has a 5-year Medicaid “look-back.” A transfer for less than fair market value during that period is treated as a gift and triggers a penalty (42 U.S.C. § 1396p(c)).
- Penalty length ≈ (home equity ÷ average monthly nursing-home cost). The $60k mortgage doesn’t avoid the gift rule.
- Limited exceptions may apply (e.g., caretaker child exception if you lived there and provided care for 2+ years pre-institutionalization). Other narrow exceptions exist.
Medicaid Estate Recovery: After death, the state can seek reimbursement from assets, including the home, unless an exception applies (42 U.S.C. § 1396p(b)).
An elder-law attorney in Virginia can assess equity, exceptions, and tools (e.g., specific deeds or trusts) and plan against estate recovery. Getting counsel early helps protect benefits and the home.
Can you help me find a lawyer? I’m scared now.
Check Avvo.com for highly rated attorneys. If on a tight budget, look for local legal aid. The Virginia State Bar can also refer you.
Is this even worth doing since she already has Medicaid? Any way around it?
Yes, still worth it—there are narrow, legal ways to plan, but you should work with an attorney.
Do lawyers do payment plans?
Many do.
Thanks.
