Legal Question in Elder Law in New York

Re: Losing Home to Nursing Home?

Unless she has long-term care insurance, or sufficient income to cover the cost of her care, eventully all of her assets, including her house, may be used to pay for the cost of her care. If she wants you to inherit her house, she may want to deed it to you now, with a reserved life estate for herself. That way she continues to own the present interest in the house, and will still be considered the owner for tax purposes. But when she passes away, the house will belong to you. Medicaid can't count her life estate as an available resourse, so it won't disqualify her from Medicaid, and they can't put a lien against her life estate either, so you will inherit it free and clear. As with any transfer, this would create a waiting period for her Medicaid eligibility, so she should consult with a qualifed elder law attorney before signing the deed.