Protect Your Property From a Nursing Home Lien Through Education.
The average costs of a nursing home stay with a roommate is over $225,000 per year.
Our mission is to educate you about Medicaid prior to you qualifying for benefits so you can protect your family home or farm from a nursing home lien.
THE HARD FACTS ABOUT MEDICAID LIENS
In 2019, Medicaid estate recovery programs across the United States collected approximately $733 million. That same year, Massachusetts, New York, Pennsylvania, Ohio, and Wisconsin accounted for 40% of all property takings.Alaska pursued the lowest number of estate recovery actions at less than 500 per year. Comparatively, Iowa pursued 15,000 recovery actions on average, while New York pursued 30,000 annually.
Money values of the properties recovered varied: for Missouri and Wisconsin, the average was around $5,000; however, Alaska and Georgia were at $30,000 per estate. In 2019, the rate of hardship claims accepted was nearly 30% in New York.
In a 2021 Medicaid Report, it was discovered $44,393 was the average value of Medicaid recipients’ net wealth, while the lowest 25% average was at $14,236.Additionally, home values averaged at around $27,364, leaving the bottom 25% value at $7,000.
The Medicaid and CHIP Payment and Access Commission, Report to Congress on Medicaid & CHIP, Ch. 3 (Medicaid Estate Recovery: Improving Policy and Promoting Equity) at 81 (March 2021).
The average amount that Medicaid will cover these days is $3,500 to $4,000 per month. If the average stay costs $8,000, you will need to come up with an additional $4,000 per month. If you own property, a lien can be placed on your home to cover the debt. To avoid this, you need to start planning five years before entering a nursing home. Even if you receive in-home care through Medicaid, you can still be subject to a Medicaid lien. Make sure your income is placed in an IRA account for your healthy spouse or children. If the farm is an income-producing business, the property will be exempt from a lien. If you own just the home, ensure your sibling lives with you for two years prior to signing up for Medicaid. This will exempt the home from a lien as well.
Don’t Bet the Farm on Medicaid.
In its Sixth Edition this book provides a short and detailed breakdown of estate recovery in over 25 U.S. states. It also provides information about unique state laws in some states; for example, Florida can exempt up to 160 acres of land from a nursing home lien, and much more! Purchase the latest copy today by clicking on the "Buy Books" link in the upper corner.
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“With the average age of the U.S. farmer being 60 and older, the need for estate planning services and land protection are immediate.”
— Don’t Bet the Farm on Medicaid 6th Edition
FAQs
Q1. How long before needing care should I start planning to protect my home from Medicaid liens? It's best to start planning at least five years before you anticipate needing long-term care. This aligns with Medicaid's five-year look-back period and provides more options for asset protection while helping avoid penalties that could delay eligibility.
Q2. What are some legal tools I can use to protect my home from Medicaid liens? Some effective legal tools include irrevocable trusts like Medicaid Asset Protection Trusts (MAPTs), life estate deeds, and joint ownership arrangements. Each of these options has unique advantages and considerations, so it's important to consult with an elder law attorney to determine the best strategy for your situation.
Q3. Can Medicaid take my house if I have a spouse or dependent living there? No, Medicaid cannot take your house if certain family members are living there. This includes a living spouse, a child under 21, a blind or disabled child of any age, or a sibling with equity interest who has lived there for at least one year before your institutionalization.
Q4. What options do I have if I need immediate nursing care and haven't planned ahead? Even without prior planning, crisis Medicaid planning offers options. Strategies like qualified income trusts, Miller Trust, and Medicaid-compliant annuities can help protect a significant portion of your assets. For married couples where one spouse remains at home, it may be possible to preserve up to 100% of the assets.
Q5. How can I protect my home if I want to receive care while staying there? If you prefer to age in place, you have several options. The Child Caregiver Exception allows you to transfer your home to an adult child who has lived with you and provided care. You can also establish a personal service contract for family caregivers. Additionally, Medicaid's home-based programs might provide assistance with daily living activities while allowing you to keep your home.
You need years of planning to protect your property from a Medicaid lien.
Sign up to learn more about your Medicaid planning options.