Does Nursing Home Take My Home? – Mainline media news

In 2021, the median cost of nursing home care in a semi-private room in Pennsylvania was $ 10,403 per month ($ 124,836 per year), according to the Genworth Long-term Care Cost Survey.[i].. The need to pay the incredible cost of nursing home care can be financially devastating. When faced with concerns about rising long-term care costs in the United States, many are worried that they may lose their homes to pay for long-term care facilities.

Nursing home care is generally paid in three different ways. (1) With personal funds. (2) Have long-term care insurance. Or (3) Qualify for Medicaid. It’s a common misconception that you have to sell your home to qualify for Medicaid, or that a nursing home robs you of your home. Normally, you don’t have to sell your home to qualify for Medicaid, and nursing homes literally don’t rob you, but you risk losing your home at the cost of long-term care and you need to plan accordingly.

If certain exceptions apply, your primary residence is not a countable resource in determining Medicaid eligibility. One of those exceptions is when a Medicaid applicant (an individual in need of skilled care) is married and her spouse lives at home. If the house has a spouse, the value of the house does not count as an available resource of Medicaid. However, protection is lost if the house is sold or if the spouse moves out of the house. Also, when a Medicaid beneficiary dies, the state is always at risk of trying to gain value for the home through a process called real estate recovery. Working with a senior lawyer is very important as you know your options for your real estate when faced with admission to a nursing home.

Unfortunately, there is a lot of false information about the best way to protect your home. I would like to work on why giving your home to your children is not the best idea. Most people are familiar with the fact that Medicaid has a five-year “reflection” period. This means that gifts or assignments that are less than fair market value made during the lookback create an ineligible period called the “penalty period”. Depending on the value of the transfer or gift, the penalty period may be several years. There are situations where you can transfer real estate without imposing a penalty. Some exemptions include children with disabilities or children under a certain age. Tax exemption is also available for children who take care of their parents at home. Other complications associated with a complete gift include capital gains tax due to the disadvantageous consequences of the tax, especially the loss of the stepped-up foundation at the time of death. In addition, this house has divorce, litigation, debt, creditors, gambling, substance abuse, disability, financial mismanagement, consumer habits, distribution to the child’s spouse or others at the time of the child’s death, etc. It is affected by the living environment.

It’s important to plan how to fund your care in case you need to enter a nursing home. You should make sure your property planning documents are in order and you have met with an elder lawyer to review your plan. After you prepare a plan and review it, it is important to make sure your family knows your plan.

The legal advice in this column is by nature general. Talk to a lawyer for advice that suits your particular situation.

Rebecca A. Hobbs, Esquire, is licensed to work in Pennsylvania, is licensed by the Pennsylvania Supreme Court, and is recognized as an Elder Attorney by the National Elderly Law Foundation. She is the principal of the law firms of O’Donnell, Weiss & Matty, PC, 41 High Street, Pottstown, and 347 Bridge Street, Phoenix Building, 610-323-2800, www. can reach Ms. Hobbs

Does Nursing Home Take My Home? – Mainline media news

Source link Does Nursing Home Take My Home? – Mainline media news

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