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Does filing lady bird deed affect Medicaid eligibility?

Posted on: 09th Sep, 2009 04:06 am
My mother has to go to a nursing home facility and there is not much hope she will return home. Can she file a Lady Bird Deed and make my brother the recipient in the state of Michigan? He lives out of town by 500 miles and cannot occupy the home. Will she still be eligible for Medicaid? We are not a wealth family and cannot afford assisted living. Help! We are running out of time!
Hi,

As far as I'm aware of, transferring property through a lady bird deed does not make one ineligible for Medicaid. The donor can transfer the property and qualify for Medicaid as long as he/she expresses his/her intent to return to the property. The property could also be considered as an exempt from Medicaid if the donor's spouse or any close relative occupies it when he/she is not around.
Posted on: 09th Sep, 2009 07:03 am
My father has passed and no one lives close enough to occupy it. My mother's intent is to return but we know she won't. How will that be viewed from the "GOVERNMENT" point of view?
Posted on: 09th Sep, 2009 09:34 am
Hi hughesrl!

Welcome to forums!

If your father had taken a mortgage on that property and if no one is paying off the mortgage, then the lender would simply foreclose the property to recover the debts.

Feel free to ask if you've further queries.

Sussane
Posted on: 09th Sep, 2009 10:02 pm
The house has been paid for almost 35 years ago. Taxes are current and there are no liens against it.
Posted on: 10th Sep, 2009 05:47 am
Hi Guest,

The property will be given to the heirs of the deceased. If the deceased had left a will, then the will needs to be probated. After the probate is complete, you need to record it at the county recorder's office.

Thanks
Posted on: 10th Sep, 2009 11:34 pm
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