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Will a enhanced life estate deed cause a Medicaid penalty?

Posted on: 18th Jun, 2007 08:33 pm
We recently applied for Medicaid in Texas for my elderly, disabled mother who is in a nursing care facility. We spent down all her assets with the exception of her home. We put that in a "lady bird deed". Medicaid notified me that she is going to be penalized for having a "lady bird deed" on the home. I was under the impression that this deed would not cause a penalty period. Should we have waited to draw up the deed for a later time? Please help...
my mother has a life estate deed with me as the beneficiary. She presently lives in the home. We live in Alabama. Will she loose her home if she have to go into the nursing home for a long period of time. She is disable, over 80 years of age & recieve social security with medicare.
Posted on: 23rd Apr, 2010 01:03 pm
As your mother only has the life estate rights and is not the owner of the property, I don't think she would lose the property if she goes to the nursing home.
Posted on: 24th Apr, 2010 01:35 am
i am confused as to when the el/lb is done?after application to nursing home,after qualification or prior to or after disqualification and pote ntilapenalty,or before application for care,and how long?I know an atty adviice would be best,but financial factor precludes.
Posted on: 25th Apr, 2010 02:35 pm
Hi patti,

You can sign a ladybird deed before going to the nursing home. As far as I know, ladybird deed does not affect the Medicaid eligibility. However, it would be a good option to contact a real estate attorney well versed with the Medicaid laws of your state and take his opinion in this matter.
Posted on: 25th Apr, 2010 10:51 pm
I would like to know the rules that apply to my question. If I am on s.s.i, medicaid only can I be added on my mothers deed? Only as a life estate at time of her passing. She is 80 yrs. old. What is the best way to handle this?
Posted on: 28th Apr, 2010 07:06 pm
hi jeffery!

welcome to forums!

you can have life estate rights to the property of your mother. she can sign a quit claim deed and give you the life estate rights. you can contact a real estate attorney and take his opinion in this regard. he will help you in drafting the deed.

feel free to ask if you've further queries.

sussane
Posted on: 28th Apr, 2010 10:29 pm
MY ELEDERLY MOTHER SIGNED AND HAD NOTARIZED A LIFE ESTATE DEED IN 2001 BUT WE DID NOT FILE IT WITH THE COURT UNTIL 2007. SHE IS NOW IN A NURSING HOME AND WE HAVE APPLIED FOR MEDICAID IN TEXAS. THEY ARE SAYING THAT THE DEED WAS NOT LEGAL UNTIL IT WAS FILED WITH THE COURT AND THAT WAS WITHIN THE LAST 3 YEARS. DO I HAVE A GOOD LEGAL ARGUMENT THAT SHE SIGNED THE DEED 9 YEARS AGO AND THAT IS THE DATE THEY SHOULD USE INSTEAD OF WHEN IT WAS ACTUALLY FILED?
Posted on: 06th Jun, 2010 01:11 pm
Welcome TXREDROSE,

It is true that the deed will not be considered as legal until it is recorded at the county recorder's office. As far as I am concerned, you don't have any legal argument against this. Though the deed was signed 9 years ago, the date on which it was filed will be taken into consideration.
Posted on: 07th Jun, 2010 02:15 am
I want to create an enhanced life estate deed for my property so my home is not held in probate at the time of my death. I understood that the enhanced life estate deed is exempt from penalty of medicaid, if medicaid is required in my future. My home is homesteaded and is in Florida.
Posted on: 24th Jun, 2010 09:41 am
Hi Isabel!

Welcome to forums!

It is true that an enhanced life estate deed or a ladybird deed will not affect your eligibility to qualify for Medicaid benefits. However, once you transfer the property, the new owner will have to file for homestead once again.

Sussane
Posted on: 24th Jun, 2010 11:01 pm
My mother will soon be in need of a nursing home. She has money in an annunity that she transfered to me 3yrs ago. My attorney is telling me to buy a home, put it in my mother's name, and establish residence with her for 30 days to avoid medicade penalty. He also suggested I do a enhanced life estate deed. What should i do?
Posted on: 12th Aug, 2010 04:49 am
Welcome Ann,

As your attorney has suggested you to buy a property for your mother to avoid Medicaid penalty, you should go for it. You can ask your mother to sign a lady bird deed (enhanced life estate deed) and get it transferred in your name later on. This won't make your mother ineligible for Medicaid benefits.
Posted on: 13th Aug, 2010 12:07 am
Is this type of deed valid in Illinois. If yes, how to set up one now that I am in good health (60) and would like to deed my house to my daughters and avoid probate upon my death or get the property without being penalized if I need to use Medicaid
Posted on: 14th Sep, 2010 08:24 pm
Hi gladys,

As far as I know, ladybird deed is not valid in Illinois. If your property is free and clear, you can sign a warranty deed and transfer it to your daughter.

Thanks
Posted on: 14th Sep, 2010 10:08 pm
My mother's name is on the deed to her home place along with my husband and myself. She has had it put in her will that she only lived there and that my husband and I paid for the mortgage and all other expenses for the house. She is in a nursing home and we have been told that when she passes the Medicaid Recovery Act will take her 1/3 of the house. If we have a Lady Bird Deed will the void the Medicaid Recovery Act claim?
Posted on: 28th Oct, 2010 06:50 am
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