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A friend age 57 on medicare and rightly so and forever. His ex-wife is about to pass and wants him to have her home valued at about $120k. She has no heirs etc.
1 Where can he get info?
2. Should he contact an attorney; if so what type?
ISTM, but IANAL, the ex-wife needs to have a will, so that friend inherits the house. She should consult an estate attorney.
Assuming friend is on MediCARE at age 57, (not MedicAID), due to also being on SS Disability, SSDI & Medicare have nothing to do with inheriting the house.
If actually on MedicAID, then that is different, and friend needs an attorney specializing in Medicaid/Disability issues.
The ex-wife should deed the house to him right now, with her reserving a life estate. She retains ownership until she dies, at which time all he has to do is record her death certificate. Then legal ownership automatically passes to him without having to go through probate (if applicable).
The ex-wife should deed the house to him right now, with her reserving a life estate. She retains ownership until she dies, at which time all he has to do is record her death certificate. Then legal ownership automatically passes to him without having to go through probate (if applicable).
This would be fine IF friend is not receiving Medicaid or any form of govt benefit due to low income. Outright ownership of that property might cause him to lose those benefits, as reed303 states here:
Quote:
Originally Posted by reed303
ISTM, but IANAL, the ex-wife needs to have a will, so that friend inherits the house. She should consult an estate attorney.
Assuming friend is on MediCARE at age 57, (not MedicAID), due to also being on SS Disability, SSDI & Medicare have nothing to do with inheriting the house.
If actually on MedicAID, then that is different, and friend needs an attorney specializing in Medicaid/Disability issues.
Friend of mine recently received a small settlement due to an auto accident which she wanted to go to her disabled son. Atty said she needed a special needs trust or he would lose his Medicaid, SSI and food stamps.
I have had to deal with this recently as caregiver for an Uncle and I worked for about 4 years as a Legal Assistant for a Family Attorney.
I'm in MI and they allow "Lady Bird" Deeds which permit the transfer of property without Medicaid having the ability to get involved for reimbursement. It's still the original owner's house while living but passes to the heirs via this deed when the owner dies.
I found my form on the internet for $40 however, if you are unsure, it is well advised to get advice from all legal experts.
Not all states allow these deeds - proper name is Life Estate Deed - however, a decent estate attorney would advise accordingly how to best go about it and the previous poster is correct - do not let your friend apply for Medicaid!!!
The trick with anyone elderly is that *if* they have accepted Medicaid for medical cost, nursing home etc. the state has every right to recoup that expenditure when the person passes away. In certain states, such as MI and a handful of others, the Lady Bird Deed can be completed and it is not treated as "hiding assets" as it would if the property had been willed or transferred in another manner, perhaps except a trust.
All that being said, lacking a Lady Bird Deed, avoid your friend signing for Medicaid because then a Will, Trust or other legal instrument can transfer the property if your state doesn't allow the Lady Bird.
If your friend has already accepted Medicaid funds, the state will recoup their payments by selling the property through a court process. Now, if your friend has a Will or a designated Executor (the estate has to be worth it, because it's a hassle if less than a certain amount) expect the process to take a year or longer.
If the estate is merely the home and possessions, consider whether or not it even needs to go through probate; you may not need to do so and a Will has to go through a court process also.
For low amount estates, it's an option to just have a Health Care Power of Attorney, a legal instrument to transfer the property (minding the details above) and possibly a Financial Power of Attorney.
I wouldn't necessarily advise Financial POA because you will be required to keep scrupulous records and will be somewhat involved in any debts remaining when your friend passes; if your friend is aware of their finances and involved in maintaining their checkbook and bills, feel free to help but don't put it on paper.
Many states have propped up "Elder Abuse Laws" which really were pushed by nursing home lobbyists; they can financially abuse your loved one, but no one else.
MI Assistant Attorney General tried to harass me when my Dad paid less that the amount due on his nursing home bills, and I was Financial POA. Nothing happened, because my Dad was paying his own bills; later, I did have to have the doctor declare him incompetent but, because no doctor had declared him prior, he was solely responsible for his money.
Without a doctor's declaration of mental incompetency, Financial Power of Atty doesn't go into effect.
I went on awhile - hope it helps you and feel free to DM. Good luck!
It is the ex-husband and potential heir who may already be on Medicaid.
LadyBird deed applies to the ex-wife/owner - who, as far as we know, is not on Medicaid.
Quote:
Lady bird deeds are an estate planning tool, not a planning strategy to become Medicaid eligible. These life estate deeds allow Medicaid recipients to protect their homes as an inheritance for loved ones without jeopardizing Medicaid eligibility.
Therefore, it is already too late for ex-husband if he is also a dual eligible receiving Medicare/Medicaid and other low income benefits such as SNAP, SSI, or utility assistance.
I suspect the only way this house will not be sold to repay OP's friend's Medicaid and other low income benefits while he is living, is if he is already living in the property at the time ex-wife passes and she has placed property in a special needs trust. In other words, he stays there until he dies. Then house is sold and proceeds go to reimburse agencies for any benefits received while alive. In some states, that option is only available to relatives. And that, again, is subject to state law. As an ex-spouse, he is not a relative.
This, of course, brings up the other issue - can he afford to maintain the property if he lives in it? Most likely, if he is not in the house at the time of her death, inheriting this property will cause him to lose all low-income benefits. His SSDI and Medicare would not be affected. His Medicaid would - which means he would need to acquire coverage for the 20% not paid by Medicare - not to mention the Medicare Part B premium which, in some states, is paid by Medicaid
Then, there is the issue of maintenance. Can he afford it? What happens if furnace, electrical, plumbing, roof need repairs? Who will do yard work?
Again - see an estate planning/elder law atty specializing in low-income Medicaid issues in HIS state of residence.
Last edited by Ariadne22; 01-01-2020 at 08:20 PM..
What state are they in? Illinois has a transfer upon death deed that is easy to do yourself. My husband and I downloaded the forms and we left our home to our son after the last one of us dies. Its simple and does not require a lawyer.
What state are they in? Illinois has a transfer upon death deed that is easy to do yourself. My husband and I downloaded the forms and we left our home to our son after the last one of us dies. Its simple and does not require a lawyer.
I've done the same with my house - but my heir is working and not accepting benefits of any kind due to low income. OP has not returned to this thread but does state heir is on SSDI. That's not a problem. But if he is also on Medicaid - which many SSDI recipients are (dual eligibles receiving Medicare/Medicaid) - and receiving other forms of low-income govt asst. such as SSI, SNAP, etc., his inheriting that house outright - depending on state law - puts an end those benefits and may require he repay them.
He and ex-wife need legal help.
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