Will a enhanced life estate deed cause a Medicaid penalty?

Jessica

Hi Amanda,

In Texas, Medicaid estate recovery claims made after death of the recipient can be exempted if there is an unmarried child residing continuously in the deceased owner's homestead for at least a year prior to the owner's death. Now, since your father is alive and I wish he has a long life ahead, using a ladybird deed here makes sense.

The deed helps avoid estate recovery thereby transferring the home to the young family members while at the same time retaining a life estate for the current owner with the power to sell the home if required. Know more… .

A transfer using ladybird deed does not incur transfer penalty because the grantor (one who gives away property) can revoke the transfer simply by transferring the property to someone else prior to this death.

The ladybird deed removes the property/home from the grantor's probate estate thereby preventing estate recovery in states which look out for the probate estate for Medicaid cost recovery.

Regards,

Jessica.

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I was wanting to know if there was anyway for me to be made grantee of my father's property without it affecting his medicaid? My father has been on medicaid and living in a nursing home since April 2005. He resides in Texas and so do I. My understanding of a lady bird deed is that the property only transfers into your name when the medicaid property owner passes away. I was wanting to transfer the home in my name now but I want to do it the right way. I dont want it to affect his medicaid. Also a friend told me about a website some attorney has with information on situations like this. He even stated how other attorneys dont even know about it. But you have to purchase a video explaining the procedures to transfer property into your name. I really believe medicaid hides things from people. They try to make it impossible for you and knowing there is a way to transfer property at anytime without affecting your love ones medicaid. I so think that's wrong! Could some one please help me out or let me know what kind of attorney I need to see? Thanks!

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Thanks for your help Jessica! I didn't see your post.

Samantha · Posted: Sat Mar 29, 2008 2:44 am Post subject: RE: medicaid and ladybird deed

Hi Amanda,

I hope you have read through Jessica's suggestion. As for the lgeal issues, I suggest that you look out for a Texas Elderlaw attorney.

May god bless you.

Samantha

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I went to an attorney here in Texas where I live and I was told there is NO such thing as A Lady Bird Deed. I was wanting to know if anyone had information I could print out that can back me up on this. I didn't know if there was some kind of law/code. I also want to thank everyone who has replied to my messages. Thanks a lot!!!! Smile

larry · Joined: 27 Jun 2007 Posts: 3164 446.85 Dollars($)

Hi amanda,

Welcome to the forum.

I think your attorney may know the Ladybird deed as enhanced life estate deed but these two are the same. If you have any doubts or queries, you can ask the community attorney Joshua Heard. You can find his contact info at the upper right hand side of this page.

Best of luck,
Larry

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