Medicaid question?

[Lono]

Ok a family member of mine who has logged all his life is pretty much disabled now. He lost his job because of logging places shutting down but cant really work now anyways. He has been to the doctor and the doctor told him he needed to get on medicaid. He has two bad knees and limps. He is a person who really needs to be on disability and medicaid. He has worked and paid taxes his whole life and to me thats what the programs are for. Anyways, today he was told that if he got on medicaid and remained on it for 7 years that after that, the government would get the deed to his house and sell it on his death. Is this right? I told him that I didnt think there was anyway that could be right? Anyone know anything about this?

[jiveturkey]

That doesn't sound right at all.

[Mr. Krab]

I wouldn't doubt it. They also make you get rid of any stocks,bonds,retirement,401k before you can get on medicaid. My grandmother got really sick towards the end and they wouldn't let her get medicaid because her house was worth too much or something.

[Skip Towne]

Call, or better yet, go to the local social security office and they can tell you.

[Mr. Krab]

<table width="85%"><tbody><tr></tr><tr><td style="width: 5%;">
</td> <td> <table> <tbody><tr align="left"> <td>
Protecting Your House After You Move Into a Nursing Home

Last Updated: 6/23/2008
</td> </tr> <tr align="left"> <td id="MainContent"> While you generally do not have to sell your home in order to qualify for Medicaid coverage of nursing home care, it is possible the state can file a claim against your house after you die. If you get help from Medicaid to pay for the nursing home, the state must attempt to recoup from your estate whatever benefits it paid for your care. This is called "estate recovery," and given the rules for Medicaid eligibility, the only property of substantial value that a Medicaid recipient is likely to own at death is his or her home. If possible, you should consult with an attorney (http://www.elderlawanswers.com/attorney_search/AttorneySearch.aspx) before entering a nursing home, or as soon as possible afterwards, in order to discuss ways to protect your home.
In those states that have implemented the Deficit Reduction Act of 2005, the home is not counted as an asset for Medicaid eligibility purposes if the equity is less than $500,000 ($750,000 in some states). In all states, you may keep your house with no equity limit if your spouse or another dependent relative lives there.
Transferring a Home
In most states, transferring your house to your children (or someone else) may lead to a Medicaid penalty period, which would make you ineligible for Medicaid for a period of time. There are circumstances in which it is legal to transfer a house, however, so consult an attorney before making any transfers. (For example, transfers to a disabled child or one who qualifies as a "caregiver child" are permitted.) While you can sell your house for fair market value, it may make you ineligible for Medicaid and you may have to apply the proceeds of the sale to your nursing home bills.

</td></tr></tbody></table></td></tr></tbody></table>http://www.elderlawanswers.com/resources/article.asp?id=6897&Section=4&state



Can I give my home to my children after I die without having a penalty?
Yes, if done right. It is possible to give your home to your children after you die, by transferring
the home to them now but keeping a "life estate with the power to sell" for yourself. That means
that you own the house as long as you live. During your life, you can still sell the home if you
want. After you die, the house goes directly to your children without going to probate court.

Under Vermont law, it may also be possible to sell or give your children a small percentage of
your home, like a 1% interest each, and to own your home together as "joint tenants with the
right to survivorship". The transfer of the 1% would be penalized, but that may not be worth
very much. After you die, your children would own the home outright as your survivors.

You should see an attorney before doing anything to give your children your home. Make sure
that attorney understands Medicaid law.

http://www.vtlawhelp.org/Home/PublicWeb/Pages/Health/LTC-Medicaid

[Cannibal]

Your friend should have prepared for this early in his life. Medicaid and Social Security are Socialist extensions of the Government and should be abolished and your friend is SOL.

Sincerely,

Buceyedpea and Taco John.

[boogblaster]

Well its a damn poor law, but it does say the state can get your house when you die.. but if your married they cant till your spouse dies ... that is what I was told, and Im on disability ...

[BigVE]

I dont know the details but just before my Mom went on disability a few years ago they had to jump through some hoops to make sure here name was not anything of value even though their house isnt worth much and they weren't making much money at all. Anything that is/was worth anything they had her name removed and put in my Dad's name or mine so I'm guessing you may be right. Good luck, this is a long tedious process and most people get denied the first time around...it seems like S.O.P. for disability.

[Mr. Krab]

I dont know the details but just before my Mom went on disability a few years ago they had to jump through some hoops to make sure here name was not anything of value even though their house isnt worth much and they weren't making much money at all. Anything that is/was worth anything they had her name removed and put in my Dad's name or mine so I'm guessing you may be right. Good luck, this is a long tedious process and most people get denied the first time around...it seems like S.O.P. for disability.
FYI they go back 3 years to check on stuff so you need to put your house in estate or somebody else's name ahead of time.

[Marco Polo]

That is not correct. First he needs to apply for disability (Social Security Disability). He can do it online at www.socialsecurity.gov (http://www.socialsecurity.gov) or make an appointment at 1-800-772-1213.. Once he has secured an application, he then can contact Medicaid. Beings how he has worked his entire life, more than likely he will only be eligible for Medicaid until the point he is eligible for Medicare (deemed disabled for two years by Social Security). Since he has worked his entire life, if proven disabled, he will be a product of federal help, not state.

[wutamess]

I'm wondering if you can create a LLC for yourself and sign everything over to the LLC and you manage the LLC.

For instance, wutamess LLC is the owner of the home/estate and I, Roger and wifey (whoever) are a mgrs of the LLC.

I've been thinking about creating an LLC and putting everything I own into it. That way no one can take anything under my SSN.

Is that doable?

[Fat Elvis]

I'm wondering if you can create a LLC for yourself and sign everything over to the LLC and you manage the LLC.

For isntance, wutamess LLC is the owner of the home/estate and I, Roger and wifey (whoever) are a mgrs of the LLC.

I've been thinking about creating an LLC and putting everything I own into it. That way none can take anything under my SSN.

Is that doable?


You need to set it up as a trust.

[38yrsfan]

Your friend should have prepared for this early in his life. Medicaid and Social Security are Socialist extensions of the Government and should be abolished and your friend is SOL.

Sincerely,

Buceyedpea and Taco John.

ROFL