Owners can't sell till death of Mom bc home is attached to Medica

[Richard Bradshaw]

I contacted the owners of a home that is obviously not being taken care of. The owner who is in her 90s is in a nursing home. Her son told me they can not sell the home till she passes away because her medicaid is somehow attached to the property as collateral I assume. Has anyone dealt with this? Is there any way I can get control of the property via a lease option or something of the sort?

Thank you in advance!

[Clay Lingg]

Sorry for being unoriginal but I answered a similar question recently so I copied and pasted from a prior post. 

"I've counseled clients in the exact same situation in Pennsylvania on the proper steps to comply with the 5 year look-back penalty under Medicaid rules using a gifting and Medicaid compliant annuity strategy. Doing so would allow you to purchase the property for half the value without causing an issue with Medicaid, without stopping payment to the nursing facility, and avoiding a filial support claim against the daughter for reimbursement. Feel free to send me a message if you want more details. Good luck!"

The seller's son is somewhat accurate regarding Medicaid Estate Recovery but you can avoid that by selling the property prior to the owner's passing. You would be purchasing the property outright for 45-50% of the value. The range is dependent on the owner's income and other available assets. You would use the equity gift as your downpayment with the property. How you pay the seller is what makes the process work. Feel free to send me a message.