Legal Question in Wills and Trusts in Mississippi

Re: asset protection

This response is not confidential and is not based on any particularized research. It is based on my general experience, and only the limited facts in your email. No attorney-client relationship is formed.

If she keeps the home with the intent to return, it shouldn't count againt her as an asset in qualifying for Medicaid assistance. Florida rules will govern such questions, so you should contact Medicaid there. However, when she passes away, Medicaid will have a right to recover against the estate the money it paid for nursing home care. Therefore, if the estate has insufficient assets, the home is at risk of being sold to pay for the Medicaid claim. At that point, the family will need to negotiate with Medicaid about settling its claim in order to protect the home. There are tax advantages in waiting to take the home through the estate and settling with Medicaid. If the home is sold now to family, there will be a Medicaid penalty unless it can be shown the home is sold for fair market value. Then,nearly all proceeds of the sale will to be used up before she will then qualify for medicaid assistance with nursing home fees. Alternatively, the home can be sold for fair market value and the proceeds put into an annuity to the mother's benefit. The annuity will count against her monthly income limits to qualify for medicaid but if it doesn't disqualify her, I think it can be used to provide for quality of life things she would not otherwise get living at the nursing home with only Medicaid assistance. The annuity can be purchased commerically or possibly funded by the family. There might be other alternatives, but the mother's agent needs to talk with an attorney.

Re: asset protection

This is a very complex problem. You should sit down with an attorney who handles medicaid trusts and planning.

Re: asset protection

sell the house. (to the children)