Legal Question in Wills and Trusts in Pennsylvania

My dad has been in a nursing home in PA for over 2 years, and receiving medical assistance. My mom is still living. Their house was deeded to their children in 2004, with a life estate. Can we now sell the house without penalty from medical assistance? Is my mom required to live in that house to avoid medical assistance penalty?


Asked on 3/26/15, 10:06 am

1 Answer from Attorneys

I don't really do Medicaid planning and each state has their own rules so I would check with someone in PA. I know Medicaid has a 5 year look-back period so there is no problem there. The problem is that your father also has a life estate. He cannot have more than a certain amount of funds and if the property is sold the value of the life estate and remainder interests will have to be determined. I do not know what your father's portion will be.

I would not feel comfortable advising you to sell without knowing more.

The other problem is that Medicare is mandated by law to seek recovery and if your father dies and the home is sold, Medicare will seek recovery first from your father's estate. A spouse and children are liable as well and if there is no estate for your father your mother and the children may still be liable so you need to get up with a Medicaid-planning attorney to avoid any nasty surprises later.

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Answered on 3/26/15, 3:53 pm


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