Legal Question in Wills and Trusts in Michigan

Re: Quit claim deed & liability

If the Medicaid applicant, the Medicaid applicant's spouse or an individual acting on behalf of the Medicaid applicant made a non-trust transfer, the transfer would be subject to a 36 month :look back period." At this time in Michigan, there is a penalty of one month ineligibility for every $3,711.00 transferred without receiving fair market value. Thus, a transfer of $133, 596.00 will incur an ineligibility period of 36 months. ( $3,711.00 x 36 = $133,596.00. A non-trust transfer of more than $133,596.00 will not incur an additional ineligibility period, as long as the Medicaid applicant files the application after the expiration of the 36 month "look back" rule.

Under federal law aand federal and state rules, homesteads are the exempt property of individuals applying for medical assistance in the State of Michigan. That means that the state will not count the value of the homestead in determining eligibility for Medicaid benefits. These rules provide significant protection to the primary asset of many individuals and their families in long term nursing care situations.

A deed should be filed in the county where the property is located. However, the deed is still valid even if it is not filed if the deed is properly executed.

NOTE: My opinion does not constitute legal advice unless I have been specifically retained as legal counsel and completely informed of the facts of the situation.

Henry J. Legere, Jr.

Sheikh & Associates, P.C.

35 Crocker Blvd.