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I have a question about Quit claims and medicaid

Posted on: 06th Nov, 2006 10:18 am
a piece of property is quit claim deeded 14 years ago and recorded but a clause was put into the quit claim deed "retaining a life estate". the property cannot be sold as long as this person "retaining a life estate" is alive. however, is this property subject to medicaid review if the person who quit claimed it is in a nursing facility and is applying for medicaid? the person who accepted this quit claim deed had it recorded 14 years ago is now paying taxes and upkeep on it. will the governement expect the sale of this property to pay for medicaid loss? why should the person maintaining this property invest time and money into the property if there is a chance this should happen? this property is not a primary residence. it is a summer home. note: the quit claim deed was drawn up by an attorney and recorded 14 years ago. this is a father and son relationship.
As per the Omnibus Budget Reconciliation Act of 1993 medicaid cost can be recovered from the estates of people who are 55 or older at the time when receive medicaid.

Thanks
Posted on: 06th Nov, 2006 10:52 am
Hi Sue,

There is one provision because of which a lien will not be put against the house and the house will not be sold for the payment of the Medicaid.

As per this provision if your father as a Medicaid beneficiary can prove you being an adult child have lived in the house for two years before your father was admitted to the nursing home and had provided care to your father for these two years because of which his admission to the nursing home was delayed and helped him stay out of the nursing home for these two years.

Thanks
Posted on: 06th Nov, 2006 11:20 am
Hi,

The lien for the sale of the property can not be enforced on some other grounds which I would like to state.

a. There is a living spouse or
b. In case the child is under the age of 21 or
c. The child is blind or disabled.
Posted on: 06th Nov, 2006 11:48 am
"However, is this property subject to medicaid review if the person who quit claimed it is in a nursing facility and is applying for medicaid?"
As per OBRA as father has retained a life estate, the medicaid estate recovery is applicable by the state in such a case.
Posted on: 06th Nov, 2006 12:14 pm
"Will the governement expect the sale of this property to pay for medicaid loss?"
I think you can talk to lenders for getting a mortgage loan, which can be used to pay off the medicaid costs and that way you will not have to sell the property.
Posted on: 06th Nov, 2006 04:41 pm
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