In April 2018 my wife and I will have taken care of her father for 2 years. According to Medicaid father can gift house to daughter and house will not be considered part of his estate if he goes into a nursing home after that. My question is this. We really need a bigger house to live in. Can father buy bigger house now with his own money or does new house start the 2 year period again?
I’m thinking it’s not going to be that easy. You’ll have to provide documentation from his doctor stating he needed care & specifically what kind he needed.
He was receiving 24/7 care already? What level of care was provided? On a doctor’s order? Medicaid may want to know that.
I wouldn’t proceed until I spoke with an attorney familiar with Medicare law in your state to avoid any surprises. You have a lot to lose if Medicaid requirements are not met. It’ll be worth the money for the consult.
Sounds like you are going to sell the house to buy a bigger one.
Good luck!
Check with an attorney who specializes in Medicaid rules in your State
Although caregiver exemption allowed how it can happen could well be that it must be an after death process. So even though Sonny was Dads live in caregiver (no other full time job) say from 2014-2106 and then dad moved to a NH this year; the caregiver exemption and property transfer filing has to wait till Dad dies. If dad dies in 2020, that’s 3years of your paying all property costs and keeping detailed documentation on all as property remains in his name and his homestead. Also you need to find out what his state requires as documentation for medical necessity for caregiving in order for caregiver exemption to be allowed. Like for TX caregiver exemption in the NOI (notice of intent) and questionnaire sent by outside contractor for MERP, requires a signed letter with state licensing info from the Medicaid recepients MD or SW as to what the medical necessity was and included ICD codes. Medical necessity that clearly showed was needed and kept him out of skilled nursing care in a facility. Just aging, being iffy on his ADLs, needing medication management may not be enough to show caregiving equivalent to skilled care. Also getting documentation years later could be simple or problematic.
Dad buying a bigger house now?? I’d bet Medicaid will view that asset transfer with a jaded eye. Are you aware Medicaid has strict property value limits for eligibility (that vary by state).
If you want to buy a new house is a wrinkle that you need legal advice for.