Posted on: 20th Sep, 2011 11:39 am
My dad had transferred his house after my mother died in 2009 to my sister and I. He retained a life estate. Subsequently he had a fall a year later and broke his leg. When the hospital sent him to the nursing home for rehab after surgery, he got pneumonia and a colon infection. He was able to overcome those infections after another stay in the hospital, but lost too much strength and could not do the physical therapy to regain an ability to walk, he also is incontinent and has dementia. After running out of Medicare coverage we were on private pay and "spending down" all of his assets in oder to get Medicaid. My sister and I had to re-quitclaim the house back to my dad. Now they want him, (me I have power of attorney to sign over the house to Medicaid). The house was only purchased 3 years ago and has an approximate retail value of $134,000 and a loan balance of $120,000, with a monthly payment of about $900 plus condo association and fire insurance dues. of $115 monthly. They are treating the house as an asset, but he would only net about $500.
They are not allowing him to make the payments, I, the son am making them. Should I just let the house go back to the bank?
They are not allowing him to make the payments, I, the son am making them. Should I just let the house go back to the bank?
I am making the payments, but I am not on the loan. Medicaid wants the rights to the property, but if it sold today, dad might get $500 after costs, commissions and property taxes. So should I let the house go back to the bank? If I rent it out does medicaid count that as income for my dad even though he owes Mortagage and condo association each month?
Yes, you still owe the bank the money you borrowed. And you can be found to be in violation of the mortgage contract if the reason for the condemnation was due to neglect.
:idea:
:idea:
Hi Guest,
If you sell off the property, the chances will be less that your father will qualify for Medicaid. So, before selling off the property, you should properly check out the pros and cons and then take a decision.
If you sell off the property, the chances will be less that your father will qualify for Medicaid. So, before selling off the property, you should properly check out the pros and cons and then take a decision.
Every State handles Medicaid differently, and it's a comprehensive subject that needs to be done properly or it'll be painful later. I highly recommend consulting with an Estate Planning Attorney on all questions regarding your situation. It'll be done properly and you won't have to worry about it afterwards.
