August 2013 my parents home was put into me and brother's names. Mom has been in a nursing home for 6 years and on Medicare/Medicaid. Total income for Dad is about $1500/mo. He has just been diagnosed w/terminal lymphoma and we think he'll go into hospice, but not home. His hope was that the property would be divided between us kids. State of WY. will someone take their home and auction it off? Or is there a time frame we have already met? Thank you,
Go to the search for this site and enter MERP. Many previous questions and answers will come up on this subject. Take some time and read through them and you will find a good deal of information on this subject.
“The Medicaid Estate Recovery Program (MERP) is a process initiated by U.S. state governments for recovering payments they made under the Medicaid program to program beneficiaries. The government recovers the sum of payments from the estate at the time of death of the program beneficiary.”
Wikipedia
And so every year since 2013 the tax bill is in you & your brothers name?
And you & bro could document paying all costs on property all these years?
At the time of mom’s Medicaid application (2012?), house in parents name?
My ?s are geared to the concern that property not actually transferred....
For dad, Hospice to be in-home or will he move into a NH?
In a facility Hospice is not totally covered by Medicare, the additional medical & comfort care services done by Hospice are a Medicare benefit. The daily room&board charges at a NH will need to be paid by Medicaid or private pay. The tally for this atop your mom’s 6 years of care is going to easily be 6 figures. What’s value of house?
To me, the path MERP takes is very interdependent on your states administrative code, probate & property Laws. Some states it’s a claim, others a lien and very different to wade through. Whether state does recovery internally or has outside contractor seems to make a difference as well.
Quit claim deed was accomplished through the lawyer &/or courthouse. I haven't paid property taxes at all. We didn't think about it, I guess. I have been paying quite a bit of the maintenance costs for many years. Mom's name was removed from the house 6 years ago when she went into the nursing home/applied for Medicaid. Dad pays the home insurance.
no home hospice at this time. more along the lines of live in hospice or nursing home. do you know if that makes a difference in the risk of losing the house whether he goes with home hospice or onto a facility?
In whose name is property tax bill addressed to?
If it’s showing dad or mom or mom&dads name it’s being viewed as their property by assessor & states database. So you haven’t paid property taxes at all? Somebody has, right? I’m going to guess that if dad has been paying taxes it’s cause tax assessor bill still in his name.
Did atty explain what a Quit Claim Deed is?
And how it’s different than a Warranty Deed?
Was this atty a CELA or NAELA level elder law atty?
QCD transfers what a person “thinks” they own, so whether that’s accurate or not doesn’t matter to do a QcD; but if there’s liens, judgements or other clouds on the property title those ARE STILL THERE, and IF something is clouding title then you cannot fully own property till they are removed. QCDs can be a real clusterF to sort through for multigenerational inherited property as there’s always an errant cousin heir who has judgement against them which clouds QCD title.
It is only a Warranty Deed that guarantees proper clean title.
QCD issues can be solved. You can do a Quiet Title Action. Quiet needs about 4 -12 months to run its course due to published notifications needed. It’s speciality legal work, not really expensive but needs atty who knows the sequence for Quiet for your county or parish (I’m in LA, we have parishes). Quiet often done for tax sale acquired property to establish clear title.
The timeline - if I’m reading it right - has your mom QcD home to you & bro AFTER she is on Medicaid. This isn’t allowed by Medicaid as it’s gifting an asset of hers to you all. If your state does an annual RE- eligibility for Medicaid, it requires disclosure of any transfers of assets with penalties if not done. I’m going to guess it hasn’t been an issue as states database shows house still owned by parents.
By going on Medicaid, state can place a lien or a claim of all costs state paid through Medicaid on mom’s care. If dad goes onto Medicaid as well, then add his costs too. QCD doesn’t matter as till that Medicaid lien is gone property can’t ever be sold with a Warranty Deed done. Almost all lenders nowadays only do mortgages, lending, etc if title is clear which means sales are by Warranty Deed with title insurance. Medicaids lien or claim will be there till it’s cleared or a judges order (like from probate court) allows transfer.
Most places have property taxes due end of January. I’d suggest that before another tax cycle happens that you all meet with a NAELA level atty who has Real Estate atty they work with to determine just what’s what on the situation. Good luck!