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I have read that, too. But, I have always wondered how they, or their spouse, can pay the property taxes on a house worth that much while on Medicaid.
My former condo was only worth $160,000 and the property taxes were $4,500. If someone's house was worth over three times that amount where would the $13,500 or $14,000 a year in property tax come from? Who would pay it if the person was in a nursing home on Medicaid?
The property tax is completely dependent on the state where the property tax is. In MA 160k would be about 2.5k. My home 400k is 7k annually. It is even broken down further with county and city rates in that. A home of your value in TN or SC would be under 1k annually.
^^Yeah but I still get the point of the question….even if taxes are 1K, in a state where you're only allowed to have -- like 2,500 to qualify, that does seem kind of tight on how the taxes might get paid.
You can google a list for the 10 worst states: SOME of these are from there. Other's are just random.
Obviously there may be some credits, abatements or discounts but….median property taxes :
New York it is $3,755….California is $2,839.00…….. Illinois: $3,939….New Jersey: $7,331….New Hampshire: $5,017
Connecticut: $5,280….Wisconsin: $3,202……. Montana is: $1,465.00….Iowa is $1,569.00 …...
Mississippi is $508.00….. Alabama is $398.00
I have read that, too. But, I have always wondered how they, or their spouse, can pay the property taxes on a house worth that much while on Medicaid.
My former condo was only worth $160,000 and the property taxes were $4,500. If someone's house was worth over three times that amount where would the $13,500 or $14,000 a year in property tax come from? Who would pay it if the person was in a nursing home on Medicaid?
Quote:
Originally Posted by golfingduo
The property tax is completely dependent on the state where the property tax is. In MA 160k would be about 2.5k. My home 400k is 7k annually. It is even broken down further with county and city rates in that. A home of your value in TN or SC would be under 1k annually.
Thank you for the information.
Hmmm, since our condo was definitely on the low end of the housing scale in my city & school district, I wonder if that is why our local schools, libraries, public services, etc. were top notch?
Quote:
Originally Posted by selhars
^^
Yeah but I still get the point of the question….even if taxes are 1K, in a state where you're only allowed to have -- like 2,500 to qualify, that does seem kind of tight on how the taxes might get paid.
You can google a list for the 10 worst states: SOME of these are from there. Other's are just random.
Obviously there may be some credits, abatements or discounts but….median property taxes :
New York it is $3,755….California is $2,839.00…….. Illinois: $3,939….New Jersey: $7,331….New Hampshire: $5,017
Connecticut: $5,280….Wisconsin: $3,202……. Montana is: $1,465.00….Iowa is $1,569.00 …...
Mississippi is $508.00….. Alabama is $398.00
In my state, I believe that you can only have $2,000 in assets when you go into a nursing home under Medicaid. So, where does the money come from to pay the taxes on a $505,000 house? Even if you don't live in my school district and have to pay $13,000 or $14,000 in taxes where does the money come from to pay the taxes?
Even if the taxes are only $2,000 a year (pretty unlikely) what happens after the first year when the person has zero assets? Is the money for taxes taken out of the person's SS before the nursing home gets the payment or what?
I am not trying to be snarky. I really have wondered about that when I have read about being able to keep a very valuable house and still qualify for Medicaid ?
Hmmm, since our condo was definitely on the low end of the housing scale in my city & school district, I wonder if that is why our local schools, libraries, public services, etc. were top notch?
In my state, I believe that you can only have $2,000 in assets when you go into a nursing home under Medicaid. So, where does the money come from to pay the taxes on a $505,000 house? Even if you don't live in my school district and have to pay $13,000 or $14,000 in taxes where does the money come from to pay the taxes?
Even if the taxes are only $2,000 a year (pretty unlikely) what happens after the first year when the person has zero assets? Is the money for taxes taken out of the person's SS before the nursing home gets the payment or what?
I am not trying to be snarky. I really have wondered about that when I have read about being able to keep a very valuable house and still qualify for Medicaid?
That is a good question. In our case, my brother was still living there and he paid the taxes. It wasn't a lot since there was a HS exemption on it and it sure wasn't worth 505K!
If someone is living in the house owned by the Medicaid recipient they are allowed to stay there. Maybe in those cases, they pay the taxes?
That is a good question. In our case, my brother was still living there and he paid the taxes. It wasn't a lot since there was a HS exemption on it and it sure wasn't worth 505K!
If someone is living in the house owned by the Medicaid recipient they are allowed to stay there. Maybe in those cases, they pay the taxes?
In my state, the impoverished spouse of someone in a nursing home on Medicaid can stay in their home. And, in some cases, adult children who have provided a certain number of years of full time caregiving can stay in the home after their parent goes into a nursing home.
However, spouses have a limit as to their assets as well and also have a limit to how much they can keep each month (about $2,500 to $2,900) to pay all of their housing, utilities, food, clothing, medical and other expenses.
In my example, of a $505,000 house with $13,000 or $14,000 in taxes that would leave the spouse with just over half of that allotment to pay for all of their utilities, buy food and pay all of their other bills. And, of course they would still have to pay the mortgage if the house was not paid off.
Heck, in my area, just the electricity & heat for a house large enough to be worth over a half million dollars would cost a fortune!
I guess my point is that while they say that you can keep a house worth $505,000 in practical terms I bet that it really very, very hard to do that. Perhaps, in the short run, but I have people in my dementia/Alzheimer's caregiver group who have had spouses or parents in nursing homes for five, ten and even fifteen years. Where would the money come from to pay the taxes for all of those years?
It certainly is a complex issue.
Last edited by germaine2626; 09-18-2016 at 12:33 PM..
I have been scouring the internet and can't find any good info on this. My grandmother is 91 and has been living with my mom for 6 years. She refused to allow her house to be sold, but her dementia is so severe she needs to be placed in a facility that specializes in dementia. Can she be placed in this type of facility without selling her house? My parents plan on putting it on the market, but the market is terrible right now! I'm in FL if the laws are state specific... Any help is greatly appreciated!
the problem with utilizing medicaid is there are two limitations , assets and income that you have .
all well and good you may have transferred a million dollars in assets in to a irrevocable trust . now try living off it if you are the stay at home spouse .
that is why we took out a nys partnership plan for long term care .
after the 3 years insurance runs out a special form of medicaid picks up the tab with no look back , no transferring of assets needed and all assets are not counted and almost no income limitations .
to us the perks are worth way more than the 3 years insurance
In my state, the impoverished spouse of someone in a nursing home on Medicaid can stay in their home. And, in some cases, adult children who have provided a certain number of years of full time caregiving can stay in the home after their parent goes into a nursing home.
However, spouses have a limit as to their assets as well and also have a limit to how much they can keep each month (about $2,500 to $2,900) to pay all of their housing, utilities, food, clothing, medical and other expenses.
In my example, of a $505,000 house with $13,000 or $14,000 in taxes that would leave the spouse with just over half of that allotment to pay for all of their utilities, buy food and pay all of their other bills. And, of course they would still have to pay the mortgage if the house was not paid off.
Heck, in my area, just the electricity & heat for a house large enough to be worth over a half million dollars would cost a fortune!
I guess my point is that while they say that you can keep a house worth $505,000 in practical terms I bet that it really very, very hard to do that. Perhaps, in the short run, but I have people in my dementia/Alzheimer's caregiver group who have had spouses or parents in nursing homes for five, ten and even fifteen years. Where would the money come from to pay the taxes for all of those years?
It certainly is a complex issue.
No - it is not that you can KEEP the house, but that you can qualify for Medicaid to take care of your nursing home bill until you either return to your home or pass away.
If you pass away, the house can then be sold to reimburse the state for your care.
No - it is not that you can KEEP the house, but that you can qualify for Medicaid to take care of your nursing home bill until you either return to your home or pass away.
If you pass away, the house can then be sold to reimburse the state for your care.
Thanks for the clarification. Many people assume that the spouse, or the heirs, will get to keep the house in the end.
Unless a person goes to a nursing home for short term rehab or some type of temporary problem, isn't it extremely unlikely that someone who needs nursing home care is suddenly able to go home and live on their own?
Or am I missing something obvious?
Last edited by germaine2626; 09-18-2016 at 01:29 PM..
today the facility doctors are able to make that judgement as to whether or not you will ever be able to go home again .
it isn't what you think you can do like in the old days
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