Legal Question in Elder Law in Alabama

giving away of assets by elderly

My Mom is 76 and in failing health. I am 42 years old and have lived with my parents in their home all of my life. My father recently died and the house is hers (joint w/ right of survivorship)

now. She has long term care insurance, but I recently have come to understand that it will only cover 3 years in a nursing home and about 6 years of in home care. I want to make sure that I keep my home, and hope to keep my Mom in it with me for the rest of her life, but in the worst case scenario, if she ever had to go into a nursing home and the benefit ran out on her insurance, how can I make sure to keep a roof over my head? I remember hearing that Medicaid has a two year recapture. Since I have at least 3+ years of care covered for her, should I get her to sell me the house now? Must the sale be for market value? Can she sell me a portion of it?


Asked on 1/24/09, 12:58 am

1 Answer from Attorneys
William Nolan Nolan Elder Law LLC

Re: giving away of assets by elderly

Medicaid has a FIVE-Year lookback on transfers for less than fair market value (a gift being one such type of transfer). You do however, have some options available but you must be extremely careful in how you exercize them. I strongly suggest that you meet with an Elder law attorney who understands Medicaid qualifications ASAP so you can preserve your options. Go to www.NAELA.org and use their find a lawyer option to find a suitable elder law attorney.

William Nolan www.NolanElderLaw.com

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Answered on 1/24/09, 10:19 am


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