Don’t give away the farm

In these unprecedented times, it is we may be drawn to extreme decisions. We might be concerned about empty grocery store aisles, having sufficient cleaning supplies, or the state of our finances. Given these types of concerns, it’s easy to see how persons can make drastic decisions they may not ordinarily make. We might say these decisions are really made out of fear of the unknown.

Of course, decisions made from fear are not limited to a virus outbreak. One of the most common fears among seniors is losing their home as the result of a nursing home admission. Will they take my house? Will my husband have to leave the house? Do I have to sell my house? These are all common questions asked by seniors that are concerned about the impact long-term care might have on their family home.

Unfortunately, this concern about the family home can lead to some extreme decisions. In some cases, a senior may decide to just deed a house to a child. In other cases, the senior may attempt to utilize other Medicaid planning tools without recognizing the potential consequences. However, extreme measures taken out of fear

may have negative tax and other practical consequences. The good news is Medicaid will not “take” a home while a beneficiary is living in the home or has an intent to return. Good planning is important, proper, and prudent. The key is to make good decisions based on sound counsel and not out of fear.