My grandmother receives medicare and medicaid QMB but needs to transition to medicaid that pays for nursing home care. She's been in a nursing home since June 2010. Medicare payed for the first 100 days of her stay and I used her social security (761.00 monthly) to pay for the difference. She deeded her property to me for $10.00 in April 2010. I'm concerned once I've submitted the paperwork for nursing home medicaid the state of Texas will take the house (appraised at 59,000) that she's deeded to me or she will be penalized and be unable to stay in the nursing home forcing me to care for her. I've cared for her for many years and can't physically and emotionally do it anymore because she stopped walking and has dementia. What am I to do in this situation?
But, as I said above, I am not an expert. I would contact an elder attorney or a Medicaid expert so that you know where you stand.
good luck...my heart goest out to you...these are hard times for all of us...
If the property had remained in her name only as a homestead residence it would have been an exempt asset with respect to Medicaid qualification. At her demise, however, the value of the property would be subject to Texas Medicaid Estate Recovery.
What you needed to do was to create an "enhanced life estate" in the property for your grandmother (aka "Lady Bird Deed").
Here is how to fix it:
1. Quit claim the deed back to your grandmother solely.
2. Quit claim the home back to you but this time including language giving your grandmother an "enhanced life estate" in the property.
What the "enhanced life estate deed" does is essentially transfer the property to immediately but gives your grandmother, while she is alive, the right to do anything with property she would otherwise do if she owned it (live in it, rent it, sell it, burn it down, etc.).
At her demise the property will devise to you and, this is the key, will avoid probate and, therefore, Texas Medicaid Estate Recovery procedures.
Question:
If I get a Ladybird Deed, will TX medicaid still penalize my grandmother for receiving benfits since if wasn't done 5 yrs prior to her being placed in a nursing home or receiving benefits?
If you have an application filed I would withdraw it until you complete this transaction.