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Will a enhanced life estate deed cause a Medicaid penalty?

We recently applied for Medicaid in Texas for my elderly, disabled mother who is in a nursing care facility. We spent down all her assets with the exception of her home. We put that in a "lady bird deed". Medicaid notified me that she is going to be penalized for having a "lady bird deed" on the home. I was under the impression that this deed would not cause a penalty period. Should we have waited to draw up the deed for a later time? Please help...

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

my mother has a life estate deed with me as the beneficiary. She presently lives in the home. We live in Alabama. Will she loose her home if she have to go into the nursing home for a long period of time. She is disable, over 80 years of age & recieve social security with medicare.

Like | Dislike | Share | Posted: Fri, 04/23/2010 - 13:03 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome Pablino,

You can use a ladybird deed in order transfer your property to someone else. As far as I know, it won't affect your chances of getting the benefit of Medicaid. However, before taking any step, you should have a word with an attorney and he will guide you further in this regard.

Like | Dislike | Share | Posted: Sun, 10/31/2010 - 22:29

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am thinking of getting a Lady Bird Deed for my mother's property. She has the beginnng stages of Demencia. She is still able to stay at home, but I want to be prepared for the possiblilty that I will not be able to care for her and she has to go to a nursing home. I do not want the State to take what little she has.

Like | Dislike | Share | Posted: Tue, 02/15/2011 - 15:01 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome Guest,

Your father can use a ladybird deed in order to transfer the property to you. This will not make your father ineligible for the Medicaid benefits. Nevertheless, you should contact an attorney and take his help in this matter.

Like | Dislike | Share | Posted: Thu, 12/02/2010 - 21:27

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If your child is owner of the property now and you have the life estate rights, then I don't think the Medicaid will be able come after the property. However, contact an attorney of your state who is an expert in Medicaid laws. He will help you in a batter manner.

Like | Dislike | Share | Posted: Wed, 03/03/2010 - 00:33

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Dad is going to need care soon, his home is worth 50,000.00, as it is a manufactured home in a park. His car is ten years old. People are telling us to to do a living trust, or ladybird deed, and Medicaid can't touch the two assets. What I am reading here, says that this statement is untrue. Can you help?

Like | Dislike | Share | Posted: Thu, 12/02/2010 - 14:01 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi susansue!

Welcome to forums!

As far as I can understand, if you and your siblings are staying in the property, then the Medicaid may not be able to place a lien on it. As far as exemptions are concerned, it would be better if you could get in touch with an attorney and take his opinion in this matter.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Thu, 11/04/2010 - 23:01

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Isabel!

Welcome to forums!

It is true that an enhanced life estate deed or a ladybird deed will not affect your eligibility to qualify for Medicaid benefits. However, once you transfer the property, the new owner will have to file for homestead once again.

Sussane

Like | Dislike | Share | Posted: Thu, 06/24/2010 - 23:01

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I live in NY and would like to know if I filed a life estate deed and named my only child as the recipient . Could it be touched by Medicaid after the 5 year period had passed.?

Like | Dislike | Share | Posted: Tue, 03/02/2010 - 13:40

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am a senior, considered in good health Thank - God, I want to leave my home to one of my relative, if I am require to go to a nursing home would my best bet to leave my home to my relative without having Medicaid takeover it, be to file a Ladybird enhanced life estate, or put it in a trust, and do I have to wait 5yrs. to be save? I live inTexas. what is best.

Like | Dislike | Share | Posted: Sat, 10/30/2010 - 13:09 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My mother will soon be in need of a nursing home. She has money in an annunity that she transfered to me 3yrs ago. My attorney is telling me to buy a home, put it in my mother's name, and establish residence with her for 30 days to avoid medicade penalty. He also suggested I do a enhanced life estate deed. What should i do?

Like | Dislike | Share | Posted: Thu, 08/12/2010 - 04:49 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi granny!

Welcome to forums!

As far as I know, ladybird deed is not valid in North Carolina.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Tue, 02/22/2011 - 22:07

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

As your mother only has the life estate rights and is not the owner of the property, I don't think she would lose the property if she goes to the nursing home.

Like | Dislike | Share | Posted: Sat, 04/24/2010 - 01:35

sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Ken,

You can use a ladybird deed in order to transfer the property to your son. Ladybird deed will help you in having the life estate rights to the property and you would be able to sell it off, if you want, in your lifetime. In most of the cases, a ladybird deed will not affect the medicaid eligibility even.

Take care.

Like | Dislike | Share | Posted: Wed, 11/11/2009 - 00:54

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome Jomirel,

I think you should have waited for some more time prior to drawing up the deed. but hey, did they give you the condition that you cannot draw up any deed or else you will be penalized. They must have informed you about this earlier.

Like | Dislike | Share | Posted: Mon, 06/18/2007 - 20:44 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

are lady bird deeds honored in nc?

Like | Dislike | Share | Posted: Tue, 02/22/2011 - 16:47 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi jeffery!

Welcome to forums!

You can have life estate rights to the property of your mother. She can sign a [url=http://www.mortgagefit.com/quitclaim-deed.html]quit claim deed[/url] and give you the life estate rights. You can contact a real estate attorney and take his opinion in this regard. He will help you in drafting the deed.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Wed, 04/28/2010 - 22:29

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i am confused as to when the el/lb is done?after application to nursing home,after qualification or prior to or after disqualification and pote ntilapenalty,or before application for care,and how long?I know an atty adviice would be best,but financial factor precludes.

Like | Dislike | Share | Posted: Sun, 04/25/2010 - 14:35 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi, My mother has Medicaid,Mom is very sick in hospital.But if mom goes into a nursing home will medicaid take her home. mom and my two sisters names appear on note, they are making paymets.
State where they live is Texas.

Like | Dislike | Share | Posted: Wed, 03/17/2010 - 19:27 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My mother's name is on the deed to her home place along with my husband and myself. She has had it put in her will that she only lived there and that my husband and I paid for the mortgage and all other expenses for the house. She is in a nursing home and we have been told that when she passes the Medicaid Recovery Act will take her 1/3 of the house. If we have a Lady Bird Deed will the void the Medicaid Recovery Act claim?

Like | Dislike | Share | Posted: Thu, 10/28/2010 - 06:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Is this type of deed valid in Illinois. If yes, how to set up one now that I am in good health (60) and would like to deed my house to my daughters and avoid probate upon my death or get the property without being penalized if I need to use Medicaid

Like | Dislike | Share | Posted: Tue, 09/14/2010 - 20:24 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi patti,

You can sign a ladybird deed before going to the nursing home. As far as I know, ladybird deed does not affect the Medicaid eligibility. However, it would be a good option to contact a real estate attorney well versed with the Medicaid laws of your state and take his opinion in this matter.

Like | Dislike | Share | Posted: Sun, 04/25/2010 - 22:51

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome Ann,

As your attorney has suggested you to buy a property for your mother to avoid Medicaid penalty, you should go for it. You can ask your mother to sign a lady bird deed (enhanced life estate deed) and get it transferred in your name later on. This won't make your mother ineligible for Medicaid benefits.

Like | Dislike | Share | Posted: Fri, 08/13/2010 - 00:07

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My father is going to be going into a nursing home and he will be eligible for medicaid however my grandmother has a living trust that when she dies he would inherit one fifth of the trust. Is there a way for him to stay eligible for medicaid and just have my uncles and aunt inherit the trust? Or could they just leave it in the trust until he dies?

Like | Dislike | Share | Posted: Tue, 01/12/2010 - 13:08

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi gladys,

As far as I know, ladybird deed is not valid in Illinois. If your property is free and clear, you can sign a warranty deed and transfer it to your daughter.

Thanks

Like | Dislike | Share | Posted: Tue, 09/14/2010 - 22:08

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

What legal terminology is included in a lady byrd deed

Like | Dislike | Share | Posted: Fri, 01/08/2010 - 19:20 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

MY ELEDERLY MOTHER SIGNED AND HAD NOTARIZED A LIFE ESTATE DEED IN 2001 BUT WE DID NOT FILE IT WITH THE COURT UNTIL 2007. SHE IS NOW IN A NURSING HOME AND WE HAVE APPLIED FOR MEDICAID IN TEXAS. THEY ARE SAYING THAT THE DEED WAS NOT LEGAL UNTIL IT WAS FILED WITH THE COURT AND THAT WAS WITHIN THE LAST 3 YEARS. DO I HAVE A GOOD LEGAL ARGUMENT THAT SHE SIGNED THE DEED 9 YEARS AGO AND THAT IS THE DATE THEY SHOULD USE INSTEAD OF WHEN IT WAS ACTUALLY FILED?

Like | Dislike | Share | Posted: Sun, 06/06/2010 - 13:11 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi carr,

As far as I know, Medicaid will have the rights to take away the property in order to recover the dues. However, it would be a better option to contact an attorney and take his opinion in this regard.

Thanks

Like | Dislike | Share | Posted: Wed, 03/17/2010 - 22:31

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

Your query has been replied to in the given page:
http://www.mortgagefit.com/annoucements/about49633.html

Take a look at it. Hope it helps you.

Thanks

Like | Dislike | Share | Posted: Tue, 02/15/2011 - 20:21

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

after my moms past away my dad put me and my sister on his did as joint owners now his going to go into a nursing home and needs to apply for medicate i was told he should have a ladybird deed instead his house is in florida

Like | Dislike | Share | Posted: Thu, 03/25/2010 - 21:08

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome TXREDROSE,

It is true that the deed will not be considered as legal until it is recorded at the county recorder's office. As far as I am concerned, you don't have any legal argument against this. Though the deed was signed 9 years ago, the date on which it was filed will be taken into consideration.

Like | Dislike | Share | Posted: Mon, 06/07/2010 - 02:15

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

The effort is to insure that he has a roof over his head after we (the parents) are gone. I think I know the pros but not sure about the cons. In this situation is the lady bird the proper thing to due?

Like | Dislike | Share | Posted: Tue, 11/10/2009 - 08:07 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Martha!

Welcome to forums!

Your query has been replied to in the given page:
http://www.mortgagefit.com/propertytransfer/about45862.html#189240

Take a look at it. Hope it helps you.

Sussane

Like | Dislike | Share | Posted: Thu, 10/28/2010 - 23:33

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi kris,

Your grandmother can change the living trust so that your father does not inherit her property. However, before taking any further step, I would suggest you to contact an attorney and take his opinion. The attorney will let you know whether or not there would be any negative affects due to the change in your grandmother's living trust.

Thanks

Like | Dislike | Share | Posted: Tue, 01/12/2010 - 22:15

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Rose,

Your query has been answered in the given page:
http://www.mortgagefit.com/propertytransfer/about32954.html#143243

Please take a look at it. I hope it'll help you.

Thanks

Like | Dislike | Share | Posted: Fri, 01/08/2010 - 21:21

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi lois,

A ladybird deed is a good option of transferring the property solely to you and your sister. This deed will not affect the medicaid eligibility of your father and the property would be safe as long as you or any other close relative stays in the property.

Thanks

Like | Dislike | Share | Posted: Thu, 03/25/2010 - 23:32

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I would like to know the rules that apply to my question. If I am on s.s.i, medicaid only can I be added on my mothers deed? Only as a life estate at time of her passing. She is 80 yrs. old. What is the best way to handle this?

Like | Dislike | Share | Posted: Wed, 04/28/2010 - 19:06 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My Mother passed away 10/22/10.She has been in a nursing home for passed 3 years funded by Medicaid. A Lady Bird deed was filed in March 2010. Will Medicaid be able to file a lien on my Mothers home? How long does it take to get a final answer from Medicaid. My sister/brother and I would like to sell her home ASAP.

Like | Dislike | Share | Posted: Thu, 11/04/2010 - 08:54 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

In addition to my previous question - my brother is a disabled VET with 100% social security benefits - I understand that would be a exemption to Medicaid taking my Mother's home?

Like | Dislike | Share | Posted: Thu, 11/04/2010 - 09:03 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I want to create an enhanced life estate deed for my property so my home is not held in probate at the time of my death. I understood that the enhanced life estate deed is exempt from penalty of medicaid, if medicaid is required in my future. My home is homesteaded and is in Florida.

Like | Dislike | Share | Posted: Thu, 06/24/2010 - 09:41 | Post subject:

jomirel's picture
jomirel | Joined: June 18, 2007 08:33 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Actually, the medicaid case worker was nice enough to tell us that my mother will be penalized for having the lady bird deed. And put her application as "pending" in case we decide to "void" the deed. Interestingly, we hired a law firm for legal advice as soon as my mother entered a nursing home and they are the ones who encouraged us to draw up the lady bird deed and include it with my mother's medicaid application. How can an elderly, disabled and widowed person protect the only thing left she owns and not be penalized by Medicaid?

Like | Dislike | Share | Posted: Mon, 06/18/2007 - 20:53 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I understand but if that's the rule, you can't really go beyond it. You can at best request them to spare your mother as she is disabled and old enough to bear the penalty.

Like | Dislike | Share | Posted: Mon, 06/18/2007 - 21:04 | Post subject:

sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Jomirel,

Welcome to the forums.

The law firm, as I feel, shouldn't have encouraged you even when they know that it may lead you into trouble. Anyway, what's the penalty that you'll have to pay?

Like | Dislike | Share | Posted: Mon, 06/18/2007 - 21:09 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

The penalty is assessed by disqualifying the applicant for a period of several months even for years. I have not been told the exact time period my mother will be disqualified.

Like | Dislike | Share | Posted: Mon, 06/18/2007 - 21:49 | Post subject:

miller_st's picture
miller_st | Joined: January 17, 2007 04:47 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Joann,

Penalty period is calculated by dividing value of property transferred by what is determined to be average private pay cost of any nursing home in your state by Medicaid.

As an example, if in your state average monthly cost of care is $6000 & property worth $180,000 is transferred, then the person would be ineligible for benefits for 30 months ($180,000 divided by $6000 = 30).

Miller

Like | Dislike | Share | Posted: Wed, 06/20/2007 - 12:33 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I was told that if you have a Enhanced Life Estate Deed that medicaid could not take your home away from you. That she would have complete control over home and after she dies it will go to the heirs that are stated in the will. They said it really is from the Ladybug deed? is the right?

Like | Dislike | Share | Posted: Mon, 08/20/2007 - 07:33 | Post subject:

Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Janet

Enhanced Life Estate Deed/Lady Bird Deed, does enable a person to have the home exempt from medicaid claims during his lifetime. And also enable persons named on the deed receive the house free from medicaid claims.

Like | Dislike | Share | Posted: Mon, 08/20/2007 - 16:43 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

timing is key, disposal of assets within 60 months/5 years BEFORE APPLYING causes a penalty ..... i haven't read of any penalty AFTER QUALIFYING ..... in texas a home's value is exempt for qualification purposes, but subject to merp if no ladybird deed is done after qualifying or before 5 years before the original application is filed

[size=9:a5c98cffa3][color=Red:a5c98cffa3][Turned in lower caps as per the forum rules][/color:a5c98cffa3][/size:a5c98cffa3]

Like | Dislike | Share | Posted: Wed, 12/05/2007 - 08:16 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My mother who currently lives in her home with severe demencia will have to file for medicade. Her home is all she has which is currently in a trust to us her three children. We were recently told we should not have done that and that we should have done a Ladybird Deed. It has been in trust for 2 1/2 years. What will our liabilities be with the filing of medicade?

Like | Dislike | Share | Posted: Wed, 10/29/2008 - 20:17 | Post subject:

sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Stylistathome,

I'm sorry to hear about your mother's illness. But I guess your mother won't be able to qualify for Medicaid assistance. This is because Medicaid does not approve property transfer within 5 years prior to the application. Since it's been just 2 and 1/2 years since the transfer, I guess your mother won't be eligible for it. However, you can still speak to a Medicaid attorney for further information in this regard.

Take Care

Like | Dislike | Share | Posted: Thu, 10/30/2008 - 02:41 | Post subject:

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