Over 10 years ago, my mother-in-law purchased and moved to her current house. The house was put in her son's names with the contingency she is able to live out her life there. She has recently been admitted to a nursing home for dementia. We are being told the nursing home can take 30% of the home. Is this true? see less
2. In what document is the life long contingency incorporated? In a Will? Trust?
If so, read through the paperwork and see what everyone’s rights and responsibilities are. If she has the right to rent out the property instead of living in it, that has value. If she has the responsibility to maintain the property and doesn’t, that has consequences.
And, yes, consult an appropriate attorney.
No the Nursing home cannot take 30% of her home. It does not work that way. If Mom is private pay the house does not even come into it. If she is applying for Medicaid, the house is an exempt asset. The problem is, Moms SS and any pension will go towards her care. So your brothers, if they want to keep the house, will need to pay the bills, taxes and upkeep. If Mom owns 30% at her death the house becomes an asset that Medicaid can put a lien on. So if the house is then sold, the lien will need to be satisfied at time of closing. The house has to be sold at Market Value and her 1/3 will go to Medicaid not the home. If the lien is more than the 1/3 Medicaid only gets the 1/3. If less, that money I would think becomes part of Moms estate and gets split among her children.
If the house is sold now for her care, then her 1/3 goes towards her care. Again, house has to be sold at Market Value. Once on Medicaid the Nursing home is not involved. They receive Moms SS and Medicaid. Its Medicaid that deals with the house. No one can live in it unless they lived there prior to Mom going into LTC. If a Caregiver for 2 yrs or more living in the house, they maybe able to stay. A disabled child can stay but, they may have to prove tgey can pay the taxes, bills and upkeep. Rent, Medicaid may not allow that. I am just giving you the basics, an elder lawyer can give u more info.
If Mom is not on the deed or tax records as an owner, then she is not an owner. She is just being allowed to live in the house. So everything I just wrote means nothing. If she is on the deed, then I would consult with an elder lawyer. I would also ask if the house has to be up for sale to recieve Medicaid.