Medicaid deems home deeded to child to be a gift
Question: Thinking we might apply for Medicaid benefits in the future and wanting to keep our home in the family, my wife and I put our daughter’s name on the deed of our home in 2014, and took ours off. We now need to apply for benefits because my wife’s dementia has gotten to the point that she needs round-the-clock nursing care. At 78, I am not in the best of health myself and can no longer provide the care she needs. When we apply, do we need to note that we gave our home to our daughter?
Answer: I’m sorry you transferred your home, because under Florida law your homestead is an exempt asset for Florida Medicaid purposes and thus, your ownership would not impact your wife’s eligibility. Putting your daughter’s name on the deed was effectively giving her a gift. You must report all gifts (i.e.,transfers for less than fair market value) made during the five years prior to application. So if you apply for benefits in, say, September 2018, you have to report all gifts back to September 2013. Medicaid totals all transfers made during the five-year lookback and divides it by a divisor, currently $8,944. (The divisor is the average nursing home cost per month in Florida.) The resulting number yields the penalty period — the number of months your wife would be ineligible for benefits, assuming she Joseph Karp
The Karp Law Firm, P.A. met all other eligibility criteria.
That’s the bad news. Now for the good: If your daughter is amenable, she can “undo” the gift by re-deeding the property back to you and your wife. However, please do not do this on your own - consult a Florida Bar certified elder law attorney for assistance. I advise all readers thinking of taking steps to become Medicaideligible to do the same.
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.