She's 75 just been diagnosed with bi polar 2, mild dementia. Has a nice retirement monthly income and some assets and owns her home. She needs some assistance and support and should not be home alone 24/7. We live to far apart for me to check on her daily. She has not been deemed incompetent. Sell of her home is over $200,000. Which will all be used towards new bigger home to share. We have been planning this move together before she was officially diagnosed with bipolar and dementia. I can not afford the bigger home with out her $$ down to take care of her. She has a living trust set up for all her finances including her existing home. She does not want to go to assisted living and does not want to give a lot of her money to in home health care. She wants to live with me.
If we do this how can I protect the new home from Medicaid issues when her dementia is at a higher level and when she will need better care then I can provide? Should I put the deed only in my name ? I understand the gift laws for the 11 million life time and 5 year look back for Medicaid qualifications. My mom has Medicare and BCBS now. I will do what ever is best for her care even if it means we do not get the bigger home and live together.
Of course, check with an elder attorney to be sure your situation meets the guidelines.
If an adult child lives in the home of his or her parent for two years or more (providing substantial caregiving services), prior to the parent being admitted into a nursing home or assisted living facility (that accepts Medicaid), the Medicaid applicant may transfer the home to the child who provided the care that delayed their parent having to go into a nursing home.
Caregiving includes assistance with ADLs such as going to the bathroom, assistance wtih bathing, getting dressed, cooking meals, dispensing medication, and making sure the elderly parent is otherwise safe and healthy.
The child caregiver rule is an exception to the rule that imposes a penalty on transfers of any assets (without fair value in return) / uncompensated transfers in the 60 month period prior to the Medicaid application (referred to as the “lookback period”
She will be putting down the 200,000 on her own I will be making mortgage payment on the remainder balance of 160,000 and she has a living trust which is making it tricky if she passes away and the home would be included in her assests for distribution between grand kids and me and my sibling.
I don't know what other assets your mother has, but you've already done the math, and $200k will last just a couple years in AL. Yikes!
I would not recommend using the money from the sale of your mom's home to buy a home for yourself. However, what if she sold her house and bought something closer to you you for herself? You could still move in together. Or... you and your mom could find a larger apartment and split the rent. She could either sell her house or rent it out.
Lots of options are still open to you and your mom. I wish you the best, and give your mom and kids a hug from me. ;-)
Very obviously the elderly age and generally not in a positive manner. Your mother may retain a positive disposition but her body and mind will continue to fade possibly at a slow but steady pace. How will you meet those needs if you need to continue to work fulltime?. She may not be able to continue to have her wishes granted regarding outside help in whatever form is needed. Then all of you in a larger home with more space may not address her needs and cost factors will come into play. You then may have to be uprooted again. I don't know where you live but not all real estate markets remain strong. We sold last year in one that was rapidly declining.
You may find answers here to seem extreme but in general while your plan might seem good for now it could detoriate in the future. So many others know that situation and have had the expertise of time dealing with an aging parent who requires more and more care.
I hope you are able to absorb the advice of others and look realistically at the various situations regarding your mother's aging process. Without the elusive crystal ball many of us might secretly wish for all scenarios should be considered.
thats why I’m getting legal advice. As you know it’s a very gray area with mental health and memory care. Not all fit the same mold. I’m trying to do what’s best for my mom And our situation. I can not just leave her at her home and pray for the best. I need do do something now
If she should need a nursing home that could easily cost $120,000 a year. $10K a month is not uncommon.