Nursing Home Care/Medi-Cal Eligibility/Assets from Sale of Primary Residence

[jpalermo]

What is the name of your state?What is the name of your state?California

Father's nursing home care is coveed by Medi-Cal and a veteran's benefit. Mother would like to sell the family home which they own outright and move into an assisted living facility. Medi-Cal allows $97,000 in assets for a married couple. Their home is worth approximately $250,000. If we sell the home, what can be done so that Father retains his Medi-cal benefits and Mother has the financial resources for her care and living arrangements? Would it be wise to transfer title of the home to one of the children? What would be the tax ramifications when the person who receives title sells the home?

 

[BlondiePB]

What is the name of your state?What is the name of your state?California

Father's nursing home care is coveed by Medi-Cal and a veteran's benefit. Mother would like to sell the family home which they own outright and move into an assisted living facility. Medi-Cal allows $97,000 in assets for a married couple. Their home is worth approximately $250,000. If we sell the home, what can be done so that Father retains his Medi-cal benefits and Mother has the financial resources for her care and living arrangements? Would it be wise to transfer title of the home to one of the children? What would be the tax ramifications when the person who receives title sells the home?

Sorry, we don't assist posters with defrauding Medicaid. See a CPA about the tax issues.

 

[BlondiePB]

The rep said to spend down the assets gained in the sale of the home to the qualifying level.

Spending down to qualify IS fraud, and THAT is a crime, not a negative comment.

 

[pojo2]

I beg to differ, spending down is NOT fraud in any sense of the word if it is done on things for her. New eyeware, dentures, wheelchair, funeral arrangements that are fully paid and the like.

The Nursing facility can assist you with items that are legit.

Putting the home in your name would be construed as an act of deceit and looked at with suspicion at this point.

 

[BlondiePB]

I beg to differ, spending down is NOT fraud in any sense of the word if it is done on things for her. New eyeware, dentures, wheelchair, funeral arrangements that are fully paid and the like.

The Nursing facility can assist you with items that are legit.

Putting the home in your name would be construed as an act of deceit and looked at with suspicion at this point.

Getting rid of $153,000.00 is spending down. Eyeware, dentures, wheelchairs, and two funeral arrangements won't cost $153,000.00, which is the difference between the house and the eligible limit for the OPs married parents.

 

[pojo2]

Spending down to qualify IS fraud, and THAT is a crime, not a negative comment.

Yes, this is a large sum of money but your blanket statement that spending down is fraudulent is absolutely incorrect!

Been there done that and WITH the assistance of the facility.

 

[jpalermo]

I suppose then it would be best to use the proceeds from the sale to cover care for both of them until it runs out. I don't want to be involved in anything that is fraudulent. We will consult with an eldercare attorney.

 

[BlondiePB]

Yes, this is a large sum of money but your blanket statement that spending down is fraudulent is absolutely incorrect!

Been there done that and WITH the assistance of the facility.

Are there allowable/legitimate expenditures with the proceeds would have received a much different response than "spending down."

 

[BlondiePB]

I suppose then it would be best to use the proceeds from the sale to cover care for both of them until it runs out. I don't want to be involved in anything that is fraudulent. We will consult with an eldercare attorney.

Consulting with an attorney regarding allowable expenditures would be a very good idea. Do make and pay for your parents final arrangements.

I don't know how much care your parents require. There are assisted living facilities (ALF) that do have skilled nursing care units. If it is feasible to have your parents in the same place where they could be together, perhaps finding one where they are under the same roof is an option to consider.

I have also found ALFs where a person can even have skilled nursing right in the room. The only problem with such an arrangement with both your parents in such one would be if your mother would endanger her own safety doing things for your father.

Having to do tax returns for others, one couple had $135,000.00 in one year for deductible medical expenses. One spouse was very, very sick. If your mother requires assistance with 2 or more activites of daily living or is adjudicated as incompetent by the court, 100% of the ALF is tax deductible. Nursing homes are 100% deductible.

Do furnish the ALF with furniture and things from her home. That makes the transition much easier on the elder.

 

[pojo2]

Are there allowable/legitimate expenditures with the proceeds would have received a much different response than "spending down."

That is terminology that is OFTEN used when discussing this issue.