This is part of an email I received from a friend's lawyer.
"On May 16, 2017, the Nebraska Legislature passed L.B. 268 that expands asset recovery for Medicaid beneficiaries. Under the new bill, the definition of “estate” will now include any real estate, personal property, or other assets in which a Medicaid beneficiary had any legal title or interest, at or just prior to death, including insurance policies and annuities (unless paid for by someone other than the Medicaid beneficiary or his or her spouse), securities, bank accounts, intellectual property rights, contractual or lease rights, or other similar assets. Assets that are excluded from recovery include insurance proceeds or trust accounts meant for funeral and burial expenses, conveyances of real estate made prior to the effective date of the Act that are subject to a life estate, and any pension rights to the extent they are exempt from Medicaid recovery claims under federal law."
My mom created the life estate back in 2008. He said Medicaid won't be able to touch my mom's house even if she goes into a nursing home due to the fact that the life estate was created years ago. He also pointed out that my mom's estate fits the definition of a small estate because it is under $50,000. The only item left is her car which Medicaid values at $1,500. Hopefully I can save up some money to buy it.
I do feel that I've saved Medicaid some money because my mom should have went into a nursing home in October and I still have her at home. At $6,000 per month they would exceed the value of the house in just 6 months. It would feel more like cheating Medicaid if the home had a high value and I didn't need a place to live.
The act was passed in 2017. Your mother's life estate was created in 2008. I don't see the problem, what am I missing?
https://dhhs.ne.gov/Pages/Medicaid-Estate-Recovery.aspx