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What is the difference between The lady bird deed and the revocable trust as far as medicaid

Posted on: 02nd Oct, 2008 08:16 pm
My mother's property is in a revocable trust. She was on Medicaid and will be on it again when she goes to a nursing home. Is there a difference between the Revocable Trust VS The Lady Bird Deed as far as Medicaid putting a lien against either one to recoup their money after my mother passes? I understand that with 'the Lady Bird Deed', there can be no liens put against it. What about the Revocable trust...can medicaid put a lien against it?
Hi howard!

Welcome to Forums!

A Revocable Trust does not protect assets from Medicaid claims or liens. The trust will be considered an available source of money and will be spent down before the person will be eligible for Medicaid benefits. In case of Ladybird Deed, the Medicaid can put no liens on the property.

Feel free to ask if you have further queries.

Sussane
Posted on: 02nd Oct, 2008 10:25 pm
In case of Ladybird Deed, the Medicaid can't put any kind of liens on the property but a revocable trust is considered as a resource and the patient's medical costs will be paid from it. Once the money in this trust is spent, then Medicaid will provide its benefits.
Posted on: 03rd Oct, 2008 12:57 am
in reference to my mothers revocable trust, everything has been spent down...the only thing left is her home. My sisters and I are named in the revocable trust. My question is, when she passes, and we (I am her daughter and poa) sell her home, can medicaid at that time, try to recoup the money. Would we be better protected, if I had a Lady Bird Deed done now? My mother owes me thousands of dollars because my husband and I have paid her bills for the past 8 years. I want to be able to recoup that money back. Thank you so much
Posted on: 03rd Oct, 2008 05:58 am
Hi Sharyn!

I do not think you will be able to do a Ladybird Deed now. The resources from the revocable trust were used first for the treatment and then the remaining will be paid by medicaid. It will be better if you can take some legal advice.

Thanks,

Jerry
Posted on: 10th Oct, 2008 04:55 am
My husband has been in a nursingn home since July 2008. He is on medicaid and medicare. We own our home and it is in both of our names. Will medicaid take my home when he passes? What steps, if any, do I need to take to protect myself?
Posted on: 13th May, 2010 05:45 pm
Hi Eugenia!

Welcome to forums!

You can ask your husband to sign a ladybird deed and transfer the property in your name. Signing a ladybird deed will not make him ineligible for Medicare and Medicaid benefits. If you stay in the property, then they will not be able to do a estate recovery.

Feel free to ask if you've further queries.

Sussane
Posted on: 13th May, 2010 10:22 pm
We are in the process of selling my mother in law's condo to pay her nursing home bill. She also has a primary residence (husband deceased) which we are in the process of putting into a Lady Bird Deed. After the money is spent from the sale of the condo, she will be Medicaid eligible. Will the house be protected from a lien once she dies?
Posted on: 03rd Aug, 2010 08:48 am
Hi Chris,

As far as I know, a ladybird deed does not make a person ineligible for Medicaid benefits. It also saves the property from liens if the heirs to the property or spouse stays in it. However, in order to get further information in this regard, you need to speak to an attorney.
Posted on: 03rd Aug, 2010 11:36 pm
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