Save Your Home From Medicaid Estate Recovery (MERP)
There is so much bad information out there when it comes to Medicaid. I guarantee you have gotten some bad advice if you’ve asked enough people about Medicaid. And if you haven’t, you will.
One of the most common misunderstandings revolves around a person's house. I almost guarantee you’ve heard this one: "Momma can’t own a house and qualify for Medicaid." Another one I’m sure you have heard: "You have to get momma’s house out of her name or Medicaid will end up getting the house!"
1: Momma can keep her house and qualify for Medicaid
2: Medicaid won’t get the house if you take the CORRECT steps now
An individual applying for Medicaid can have certain assets that will not count against their eligibility or Medicaid. One of those is a house. In fact, in 2020, you can have a house with an equity value of $595,000 that will not count against you, and still be eligible for Medicaid.
Not knowing this, many people are advised to transfer a house from a parent to a child. But the problem with that is that it may violate Medicaid’s gifting prohibitions and five year look back rule which could disqualify you from Medicaid. It also unnecessarily puts the house at risk because the house is now considered an asset of the grantee, and could be sold to satisfy the grantee’s debts if he faces financial difficulties. What was intended to save mom’s house may be the very decision that loses it.
Also, Medicaid doesn’t have to end up getting the house. Through the proper use of a life estate deed or Lady Bird Deed, you can ensure that the house isn’t lost to satisfy a Medicaid lien that exists against the Medicaid recipient’s estate.
Are You Looking for a Medicaid Planning Attorney in Texarkana, TX?
If you are looking for medicaid planning advice, you need to speak with an experienced medicaid planning attorney as soon as possible. Contact us online or call our Texarkana office directly at 903.223.5653. We also have offices in Tyler, Paris, Longview as well as Magnolia, AR!