Nursing home resident needs help selling her home.

[Phillip Cailey]

I found a lady looking to sell her house, which is paid for. The Catch? She is currently in a nursing home and I'm informed if I buy it, the nursing home gets all the profits and she gets a measly 30 dollars a month spending money. Does anyone here have any idea how I could structure deal to buy this property to help her or her family out where they would get the profits and possibly buy it at a discount also? Thanks for any help available.

[Account Closed]

The Medicaid recipient needs to consult with a lawyer who specializes in elder law/estate issues. Indeed, the recipient doesn't qualify if she receives large proceeds from a sale and would then have to pay her nursing care out of pocket. The recipient may be able to gift deed her residence to one or more of her heirs with no change in her benefits. It means the heirs sell and receive the proceeds, not her. There are tax and capital gains issues for the heirs that they need to consider. The family needs to be one that is cooperating with and trusting of each other. If they receive the funds, then there needs to be a plan for how they will be used for the benefit of the recipient. I've worked with a couple of families in this situation and they were able to retain all their Medicaid benefits.

I strongly suggest you do not insert yourself in the recipient's financial situation. Insist they get legal and financial advice from someone other than the nursing home and Medicaid.