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Medicaid Asset Recovery - Gift Deed - What now?

Posted on: 13th Sep, 2008 05:00 am
On 10-01-2005 my mother transferred her real estate (home) via gift deed to me (I'm an only child, 64 yers of age)

Mom was in a nursing home from 08-25-06 until she passed away on
12-17-07.

First I received the normal questionaire (packet) from the Texas Department of Aging and Disability Services about 60 days after mom's death. I completed it and returned it immediately.

The second correspondence from them was 08-21-2008 stating that no probate estate has been opened yet, and if I don't start proceedings, then the state will begin then. (Note: the only asset was the real estate (home), so I don't see a need to probate anything!)

I called them, and they said their records indicated that the real estate was in my mother's name, that they were unaware of a gift deed, and asked that I fax it to them. I faxed it immediately, and then talked to a clerk that verified receiving it, and she said it appeared to her that the claim needs to be dropped, but that it would be referred to her supervisor and that I should expect a letter stating they were dropping the issue within 2 or 3 weeks. Needless to say I have received nothing, and can not even get a phone call returned.

The only other point I will make is that I lived in the house for over a year before my mother passed away, but only have 7 months of bank records, and I still live there today as this is the only residence I own.

Any ideas/opinions/suggestions of where I stand or what I should do on this issue would be greatly appreciated.
Hi wendol,

Welcome to the forums.

What type of deed did your mother use? was it a ladybird deed? Such a deed helps avoid recovery of the Medicaid costs provided by the State. Just refer to a previous community discussion on Texas Medicaid Estate Recovery.

Take care
Posted on: 13th Sep, 2008 05:28 am
It was not a ladybird deed, it was entitled, "Gift Deed" and she maintained a life tenancy if that makes a diffenence.
Posted on: 13th Sep, 2008 09:59 am
To be more precise.......It's a WARRANTY (GIFT) DEED, With Life Estate to Grantor. Hope this helps and and enables someone to provide the insight that I need.
Posted on: 13th Sep, 2008 11:46 am
If it is a warranty deed, then I guess you can't stop Medicaid from estate recovery. I guess it's better if you can consult a Medicaid lawyer in this regard.
Posted on: 15th Sep, 2008 06:12 am
Sara.........I got the date wrong in my original post.

Property transferred (Warranty, Gift Deed, with Life Tenancy to the Grantor) was on 10-05-2001.........4 years and 10 months before my mother applied for Medicaid. It appears their look back period for such issues is 36 months.........so does it appear with this information that the claim should be dropped?
Posted on: 20th Sep, 2008 04:29 am
Hi Guest!

As far as my knowledge is concerned there are two look back periods one which goes back 36 months whereas the other 60 months. It is better you consult a lawyer who deals with such issues.

Feel free to ask if you have further queries.

Sussane
Posted on: 24th Sep, 2008 12:14 am
This is a "what if" question, since the elderly person does not (yet) get Medicaid. Situation: the senior citizen mother has few assets (Social Security) and a house. The house is held in trust (a living revocable trust, signed 20 years ago) for two adult children. If the mother eventually gets Medicaid (while in a nursing home) and then passes on, can the state of Michigan go after the house? The Michigan Asset Recovery Act is limited to "probated assets", and the estate will not be probated. I see several elderlaw sites online that state that property in trust is non-recoverable, but others say it is...and some even state that the person would not be eligible for Medicare with a house held by a trust!
Posted on: 12th Nov, 2008 10:17 pm
Hi Alphazip!

You can find the answer to your query in the given link:
http://www.mortgagefit.com/propertytransfer/about15259.html#66804

Please take a look. I hope it will help you.

Thanks.
Posted on: 13th Nov, 2008 03:34 am
We have lived on our property for 10yrs and built our home and barns there, it was deeded to us by my father in law March 3, 2006, he made need to go in a nursing home soon, everyone is saying that the home or medicaid will take from us. He has life estate so does my motherinlaw, but they have their home and paid cash and built our home on it, after it was deeded to us. Can they really take all we built on here, and that we now have a deed to?
Posted on: 19th Sep, 2009 07:19 pm
Hi danielle!

Welcome to forums!

Medicaid has a look back period of 5 years. As your father-in-law had transferred the property to you in 2006, he will not be eligible for getting medicaid benefits. Once the 5 year time period is complete, then he would be receiving the medicaid benefits.

Feel free to ask if you've further queries.

Sussane
Posted on: 20th Sep, 2009 09:08 pm
check this out

http://www.mortgagefit.com/know-how/quitclaimedhomevsmedicaid.html
Posted on: 20th Sep, 2009 09:28 pm
Hello,

I need help! Just one week and a half ago, I lost my father who battled many years with multiple health issues. Although he never needed nursing home assistance, he did benefit from Home Health Care for several years. He had his own insurance provided through my mothers work but also used medicare and medicaid.

We are now facing many decisions, most of which trying to help my mother with what to do now. We have been aware of medicaid recovery and its possibilities throughout the process and even prior to my father's passing.

What can we do to protect assets from medicaid recovery? Mom's health, to our knowledge is good and she has years of good living left. However, we do not want equity in the home, etc to be taken after her passing. Can we protect and duly assign assets through a trust at this time or is it too late to ultimately protect assets? We live in Missouri.

Thank You,

Bill
Posted on: 29th Sep, 2009 07:42 pm
Hi Bill,

Your query has been replied in the given page:
http://www.mortgagefit.com/propertytransfer/about28679.html

Please take a look at it. I hope it would help you.

Thanks
Posted on: 29th Sep, 2009 09:36 pm
UYTzijB
Posted on: 23rd Jul, 2010 11:16 pm
I live in texas and my mother was admitted to a nursing home in 9-13-2004. She passed 11-5-2010. The tx law stated anyone before 3-5-05 was not to be affected. Now when I contacted them they say she can be grandfather into the 3-5-2005 cutoff. What can I do?
Posted on: 19th Nov, 2010 08:25 am
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