Legal Question in Wills and Trusts in New Jersey
estate recovery question
My girlfriends parents live with their 102 year old grandmother in NJ who is on the deed for the house. She actually co-owns the house with her daughter. As far as I know, the house is not in trust in any way. The grandmother only has medicare and medicaid for healthcare.
My question, is the house safe from the medicare estate recovery program if she needs longterm healthcare from medicare? The grandmother has no other assets other than SS and a little bit of cash.
Should the grandmothers child be worried about how this arrangement is set up? It seems to me to be a dangerous gamble.
2 Answers from Attorneys
Re: estate recovery question
I agree with Michael, that there is a risk if Medicaid assistance is needed. This could result in a lien being placed on the house, which could result in a possible problem down the road. I suggest they speak with a qualified elder law attorney, as there may be ways to minimize the exposure.
Re: estate recovery question
Yes, with a so-called expanded "look back" period of some five years or so, even if the 102 year old lady were to quitclaim her interest in the property to her daughter tomorrow, if she subsequently were to require long-term healthcare in the next year or so funded from one of the social security programs, her transferred interest in the property would likely be subject to reimbursement pursuit by one of the agencies charged with this task.
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