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Me and my wife are thinking of buying a very cheap house for her parents. Her parents live in New Mexico (if that matters) and they are both currently receiving medicaid while the man additionally receives disability because he cant really use on of his legs. The house would cost about 45 to 70k and we would pay cash. If they suddenly become home-owners would they have any issues with their benefits?
Me and my wife are thinking of buying a very cheap house for her parents. Her parents live in New Mexico (if that matters) and they are both currently receiving medicaid while the man additionally receives disability because he cant really use on of his legs. The house would cost about 45 to 70k and we would pay cash. If they suddenly become home-owners would they have any issues with their benefits?
My mom owned her own home, paid for, and also her car. Her income was about $650 month from SS and it didn't affect her benefits. Although it seemed like her food stamps got cut regularly and had nothing to do with her income. Everyone took a cut. She also had Medicaid. Even when I paid her a small amount of rent for her 'guest house' she didn't lose anything even though it brought her monthly income up to about $1,000. I think your in-laws would be okay.
My mom owned her own home, paid for, and also her car. Her income was about $650 month from SS and it didn't affect her benefits. Although it seemed like her food stamps got cut regularly and had nothing to do with her income. Everyone took a cut. She also had Medicaid. Even when I paid her a small amount of rent for her 'guest house' she didn't lose anything even though it brought her monthly income up to about $1,000. I think your in-laws would be okay.
Buy the house and put it in your name or their name. Then do a lease or a mortgage (with you financing) Charge them a monthly rent/mortgage payment, then "gift" them the same amount of money annually as the lease amount. That way they will technically still have the expenses of a house on the books, and they are allowed to be gifted taxfree (up to IRS limits). I did something similar for my son, I financed his house and gifted him the amount of interest I charged him on our note that exceeded what I would have earned in a CD. So I earned the same amount if my money just sat in a CD and He was able to pay off the house in 10 years.
don't do a thing without consulting an elder law attorney . the house has certain ramifications as well as gifting when medicaid is involved if long term care is ever needed . you have to be careful here because they will need medicaid and medicaid for long term care has its own set of rules and requirements .
don't do a thing without consulting an elder law attorney . the house has certain ramifications as well as gifting when medicaid is involved if long term care is ever needed . you have to be careful here because they will need medicaid and medicaid for long term care has its own set of rules and requirements .
Thanks for bringing that up. I had forgotten all about it, probably because we never had to deal with it with my mom. It's important though so thanks again!
don't do a thing without consulting an elder law attorney . the house has certain ramifications as well as gifting when medicaid is involved if long term care is ever needed . you have to be careful here because they will need medicaid and medicaid for long term care has its own set of rules and requirements .
Excellent advice !! Also, note that Medicaid laws vary from state-to-state, so be sure the elder-law attorney is expert on the state where the property is located.
Elderly, ill, Medicaid, possible nursing home which will take it all in the end. Do not put any asset in their name. Medicaid and other benefits are based in income/net income after rent, depending on state. You don't want to rock that boat. And, yes, see an atty.
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