How Far Back Can Nursing Home Take Your House
Medicaid is a program that helps people who are unable to provide for themselves pay for nursing home care. However, the Medicaid program has several rules to help ensure people don’t give away their assets in order to receive benefits. These rules include limits on how much money you can transfer out of your home and when your house will be considered an asset that can be taken by Medicaid. In this article, we’ll look at what these rules are and how far back they go into history when determining whether you’re eligible for Medicaid. We’ll also talk about ways you can reduce penalties if you have transferred assets in order to qualify for coverage or need more information about avoiding penalties before making any decisions about transferring assets today!
Medicaid and Your Home
If you are on Medicaid, your home is protected in the following ways:
- The nursing home cannot force you to sell your house to pay for the cost of care.
- The nursing home cannot seize the equity in your house to pay for your expenses.
- You can keep as much cash in savings as you want without worrying about it being used by the nursing home or other creditors before you need it yourself.
Asset and Property Limits
In most states, the Medicaid asset limits are different for each type of asset. For example, in California, the Medicaid asset limit for bank accounts is $2,000 per person; if you have a savings account with more than $2,000 in it you may need to spend down some of that money until your remaining assets fall below the maximum amount allowed by Medicaid. However, if your house has an appraised value exceeding $552,000 (according to Zillow), then it will not count toward your total allowable amount as long as it’s not rented out or used as collateral for loans.
Also note that there are separate rules governing how much wealth you can keep before you lose eligibility for Medicaid and other government benefits. These rules vary from state to state—the federal government doesn’t mandate any minimum balance requirements on its own—but they generally require applicants’ assets to be under certain limits depending on their age and income level. For example:
- In California: The basic limit applies to everyone except those who qualify under certain categories such as being disabled or pregnant; this category sets no minimum amounts whatsoever and allows applicants unlimited access without having their financial status checked against what they’re deemed capable of contributing into society; however this means they cannot receive any other form of public assistance either.*In Texas: Applicants must qualify based on having less than $1 million worth at any given point during their lifetimes plus a few other factors like needing long-term care services within two years after receiving benefits (or five years if married).
Transfer of Assets
When you transfer assets, such as a house or car, the nursing home must be notified so that it can determine whether those transfers will affect your eligibility for Medicaid.
Transfers of assets must be reported within 30 days of making them. These reports should include information about when and where the transaction took place, how much money was involved in the transaction and what other kinds of assets were transferred (such as property). If there are multiple transactions over a period of time or if your entire estate is worth more than $2,000 at the time you turn 65 years old, they should also provide detailed information on how much money they’ve spent on things like food each month since turning 65 years old; how much income they’ve received from various sources including Social Security benefits; and any life insurance policies or annuities owned by you or someone else who lives with you.
In addition to your property, there are other assets that nursing homes may be able to take. These include:
- Your income (like your Social Security benefit).
- Your personal belongings (like furniture and clothing).
Other common pitfalls that can cause penalties are transferring assets to family members too soon before you enter the nursing home and giving them away for less than fair market value.
Penalties exist to ensure people don’t give away their assets in order to receive Medicaid benefits.
It is important to know that penalties exist to ensure people don’t give away their assets in order to receive Medicaid benefits. If you transfer assets within five years of applying for Medicaid, you may have a period of ineligibility for the program. Ineligibility periods for Medicaid vary by state, but typically last three years. The penalty can also include a reduction in your monthly benefit amount or duration (length) of eligibility.
In addition, if you transfer property or cash before age 65 and become eligible for Medicare—the government health insurance program created by the federal government—you will be ineligible for Medicare Part A coverage as well as Part B coverage until your penalty period has been served.”
In conclusion, when considering the sale or transfer of your home it is important to understand the consequences that may occur. If you have questions or would like to learn more about this topic, please call our office for a free consultation with one of our experienced attorneys. Thank you!