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Since Medicaid exempts a home when one spouse goes into a nursing home but the other spouse is healthy, it is better to own something rather than rent?

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As far as I know, Medicaid will put a lien on the home. The house will need to be sold at market value and the money from the sale will go to them to pay for care.
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OkieGranny May 2019
Wow, I didn't know that. This is all so confusing.
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Your assets are to be used for your care not to be shielded for inheritances. Medicaid is for those who are poor, not those who have assets to pay for their own care.
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OkieGranny May 2019
I agree that people should pay for their own care and my concern is not about leaving anything to our heirs. My concern is having enough money for the non-institutionalized spouse to live on. Medicaid takes half the couple's assets excepting a home and 1 car. If they took half our assets, the person left on his/her own might not be able to afford rent.
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OkieGranny, this is something you need to talk over with an Elder Law attorney who knows how to travel the maze called Medicaid.

Please note each State handles their own Medicaid rules and programs. And what is in force today may be changed next year or ten years from now. It all depends on the State budgets, and if programs need to be cut or more funds are needed for Medicaid. It is us taxpayers who help fund Medicaid.

The best rule of thumb when it comes to renting or buying, use only one income. Thus, if a spouse should pass, the remaining spouse is usually living off of one income. When my Dad passed, so did his social security and his pension.
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OkieGranny May 2019
Thanks for your reply. Since I spent my entire life as either mom at home or granny on call, my Social Security is half what my husband's is, and whoever is left will lose my part. We are getting along OK now, but it's not like we have much left over every month for vacations or anything. I can see from all the replies that I will have to consult with an elder attorney.
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Tthere are provisions in Medicaid law so that the "community spouse" does not become impoverished.

Can you call your local Medicaid office so that they can explain this? Or even better, see an eldercare attorney? It will be money well spent .
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OkieGranny May 2019
Thanks. Yes, that is what I need to do. It gets complicated.
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First, great that your thinking ahead but I think having a house would be more of a burden than an advantage.

When it comes to a Community spouse, assets would be split. The spouse on Medicaid will spend down their portion. The CS will not be made impoverished. There's more to this but thats basic.

Really, a house could end up being a burden. Upkeep, taxes, etc. I am 69 and if my DH passed or ended up in LTC, owning a home with all that would be overwhelming. If the Community spouse ends up wanting to sell, it has to be sold at Market Value. Proceeds probably having to be split. If Community spouse needs 24/7 care, her share of assets would be spent down. No SS or pension can be spent on the house. So, family members would have to pay upkeep and/or sell. The proceeds going for care.

I am still trying to sell my Moms house. As it sits, the tax leans increase. Medicaid now has a lean. It would have been so nice if Mom had downsized years ago. Then all I would have had to do was clean out an apartment.
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OkieGranny May 2019
Yes, I am torn about whether owning would be better or worse. Rents are so high these days, that I am afraid that the community spouse would have to live in something, well... kind of crappy. If we bought a townhome, we would have more of a say. I really appreciate everyone's answers. People on these forums are so helpful.
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If Medicaid files a lien it would make things more confusing, but on the other hand they would not make you sell the home, ever. Even if you both needed care the house still would not need to be sold. It could be rented to provide additional income for the couple.

I came across this website today, very helpful with Medicaid questions.

https://www.medicaidplanningassistance.org

But you need to see an elder law attorney that specializes in Medicaid planning.
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OkieGranny May 2019
Thanks!
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If an Irrevocable Trust is put together within the 5 year look back, Medicaid can still count the transfer of the assets to the Trust as a disqualifying transfer. And if that happens, being its an Irrevocable Trust, nothing can be touched in the Trust if one needs to pull out funds.

This is complex, best to talk to an Elder Law Attorney.
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