Medicaid eligibility for home transfer to son waived in some cases

Question: Is Medicaid nursing home eligibility jeopardized if we put our son on the deed to our home? My husband is in his 70s and his memory is declining rapidly. My recently divorced son has moved in with us. He is assisting my husband and agreed to stay on to help me so we can try to keep my husband out of a nursing home. We’d like to be sure he gets the house, but we’re concerned about how this might impact my husband’s qualifying for Medicaid benefits if he ever needs a nursing home.

Answer: Putting your son’s name on the deed as a co-owner will be deemed a transfer of assets which, if either you or your husband apply for Medicaid within five years of the transfer, would impose a penalty for eligibility. But in your case, there is good news: If a child resides with a parent for two years or more prior to the parent moving into a longterm nursing home, the homestead interest of that parent can be transferred to the child without a penalty imposed, so long as the child resided with the parent in order to delay or avoid the parent being placed in a nursing home. As you can see, your situation is ideal for that scenario.

Nevertheless, even if your husband has to go into a nursing home Joseph Karp

The Karp Law Firm, P.A. before the two-year period elapses, the homestead is generally considered an exempt asset. If the home is ultimately left to your son, Medicaid would have no lien on the property and your son could still inherit it.

There are steps that should be taken to facilitate this process. Since your husband is competent now, he should participate in this process, since new legal documents may have to be drafted. Do not wait until it’s too late. See a Florida Bar Certified Elder Law Attorney promptly.

Joseph Karp, a member of the Florida and New York Bars, is a Nationally and Florida Bar Certified Elder Law Attorney and founder of The Karp Law Firm, located in Palm Beach and St. Lucie counties. The firm assists clients with wills, trusts, Medicaid and VA benefits planning, special needs planning, asset preservation, probate/trust administration and estate litigation.