Will I lose my house to medicaid?

amother

Wed, May 31 2023, 10:58 pm

I'm Divorced and remarried, But my house is in my name and xh name. (Long, involved story there). xh is not a healthy man and is likely to be going into a nursing home. My understanding is that medicaid will end up footing the bill for that, but they go after any assets a person has. And although xh hasn't paid a single bill or mortgage payment for for over 10 years, his name is still on the deed.

Can they go after my house and take it from me? If it helps, there are liens on the house (Thanks to xh) that equal to just under the value of the house itself.

amother

DarkGreen

Wed, May 31 2023, 11:04 pm

This sounds like a very complex situation where you really need to lay out all the details to a professional IRL.

amother

Ruby

Wed, May 31 2023, 11:25 pm

It's obviously unusual for your ex spouse to continue sharing property with you.

Here are some general rules regarding Medicaid that might be helpful.
https://www.medicaidplanningas.....home/

amother

Garnet

Wed, May 31 2023, 11:47 pm

I don’t really know, but I believe if it is your primary residence it is not an issue.

Now if it a summer home in the Catskills, that is a different story.

amother

Gardenia

Wed, May 31 2023, 11:52 pm

Not sure if being divorced changes anything but from my understanding the fact that you live in it should make it exempt.

amother

Ghostwhite

Thu, Jun 01 2023, 12:03 am

amother Gardenia wrote:

Not sure if being divorced changes anything but from my understanding the fact that you live in it should make it exempt.

From what I understand, after the person who collected benefits passed away, they are entitled to take the house

OP really really needs to speak to a lawyer

Amarante

Thu, Jun 01 2023, 1:22 am

You need to speak to an attorney who is experienced in this area.

The Medicaid rules regarding assets are intended for property that is owned by spouses or when property is owned with children or other relatives.

Your situation is unique and is going to depend on what the deed states and probably your divorce settlement which must have specified rights and obligations. For example, if you sold who gets the proceeds and who is paying the mortgage and property taxes.

I am not offering an opinion just pointing out that your situation is not covered by the standard regulations and is going to depend on your specific ownership and divorce settlement.

RM3

Thu, Jun 01 2023, 2:39 am

The earlier these things get taken care of the better. It’s so important!
People get uncomfortable addressing the fact that one day they’ll get old and by the time they are forced to take care of it they can lose everything they have because of Medicaids look backs etc.
Same with planning for inheritance. Why would someone want their children to potentially lose half of what they could’ve received? Some people are just afraid of addressing death.

tweety1

Thu, Jun 01 2023, 3:40 am

amother Garnet wrote:

I don’t really know, but I believe if it is your primary residence it is not an issue.

Now if it a summer home in the Catskills, that is a different story.

I think you're right.

amother

Maize

Thu, Jun 01 2023, 6:18 am

amother OP wrote:

Is your name on the deed as well and you are still living in thr house? If so, Medicaid will require a letter from you stating that you don’t want to move, and they will lien his portion of thr house. That’s it! You can talk to a Medicaid lawyer to be sure

nicole81

Thu, Jun 01 2023, 9:17 am

Is he willing to sign a quit claim deed? Or unwell enough that someone else can get POA and do so?

Btw the liens are against the property. They may have his name, but that's probably because he was listed as mortgagee and owner #1. You're liable as well, insomuch as you can sell the property without clearing the liens, even if he's not around anymore.

amother

Maize

Thu, Jun 01 2023, 9:48 am

nicole81 wrote:

You can’t do that for Medicaid. They will consider that giving away an asset for less than market value and will penalize him for that.

amother

Maize

Thu, Jun 01 2023, 9:50 am

tweety1 wrote:

I think you're right.

If it’s a primary residence AND you are on the deed. If you don’t own the house you will need to move. Best thing to do is to call Ocean County board of social services (or Monmouth or whatever county you are in) and discuss the problem with them. Ocean in particular will have the answers you need

amother

Thu, Jun 01 2023, 11:08 pm

RM3 wrote:

We are not that old. I'm under 60.

amother

Thu, Jun 01 2023, 11:13 pm

nicole81 wrote:

Yes, I know that. I was supposed to get his name off the mortgage and then the deed would be signed over to me. But when I tried for a home equity loan to use to pay off the mortgage I was denied ONLY because of the liens. Which I did not know about beforehand.

The liens are also a reason why I can't sell my house too easily. No one wants to buy a house with liens attached.

amother

Thu, Jun 01 2023, 11:15 pm

amother Maize wrote:

My name is on the deed, and it's our only residence.

I don't live in NJ, but I can try to find an equivalent place here to ask.

amother

Maize

Thu, Jun 01 2023, 11:23 pm

amother OP wrote:

My name is on the deed, and it's our only residence.

I don't live in NJ, but I can try to find an equivalent place here to ask.

Oh! Not sure why I thought you said lakewood- every state has its own rules, the ones I quoted are for NJ Medicaid

nicole81

Sun, Jun 04 2023, 2:33 am

amother Maize wrote:

You can’t do that for Medicaid. They will consider that giving away an asset for less than market value and will penalize him for that.

I don't know much about medicaid so thanks for thr clarification. But if it's in their divorce decree (I'm guessing based on a later comment that there's something like this in there), they will still penalize him? Technically as part of a divorce negotiation, the asset isn't given away for less than market value. Or do they just not care about the details of other court orders?

Op- just about the mortgage, you won't be able to get him off unless you can refinance under your own name and income. I have that situation, I own my home 100% outright, but my ex is still on the mortgage and will be until I sell (if I do).