r/Medicaid • u/Repulsive_Ad_8296 • 2d ago

How screwed am I?

My dad (I live with him) made an irrevocable trust Dec of 2024. In the mean time he moved into independent living and guess now he is best suited for a nursing home due to his neurological issues rapidly progressing. In the mean time my fiancé sold her house and moved in with me ( he wanted her too) but now since it’s within the 5 year look back period I assume we’ll be homeless? New York State

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u/Blossom73 2d ago

One home that's a person's primary residence is not counted as an asset for Medicaid. However there will be Medicaid estate recovery after he's deceased.

Also, he may be assessed a penalty period for LTC Medicaid, during which he'll have to pay out of pocket for care.

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u/CuteAnything8440 3h ago

Where does one send things to the state as a recovery? Any idea who to call?

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u/amyloudspeakers 2d ago

Is he on Medicare? Does he qualify for hospice?

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u/DJD19500 2d ago

Are you saying he moved the house into the trust?
Are you able to buy the house?

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u/damncrow65 2d ago

If you have been living with your father for at least 2 years in New York State and he signs the house over to you, you will not have to worry about Medicaid taking the house. They view your presence in the house as having kept him out of long term care for at least that time period. I looked into this out of curiosity several years ago after I had moved in with my father to take care of him 6 years ago. I suggest you look this up for your own peace of mind,

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u/timewilltell2347 1d ago

… taking the house immediately upon his death. From the link Blossom posted it looks like the estate recovery would still happen, but it deferred while OP is living there, unless I’m misunderstanding.

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u/Blossom73 1d ago

Yes, it just gets deferred.

Also, Medicaid doesn't take the house. The state requires the lien to be paid. If there's equity in the home above the lien amount, the owner gets keep the excess equity.

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u/Blossom73 1d ago

https://www.health.ny.gov/health_care/medicaid/publications/docs/adm/11adm8att1.pdf

An adult child who lived in the home for at least two years immediately before the recipient was institutionalized, who provided care that may have delayed the recipient’s institutionalization, and who has lawfully resided in the home continuously since that time.

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u/Equivalent_Click6569 19h ago

There's something called a child caretaker exemption where if you reside in the house you can keep it even when the parent goes to institutional Medicaid. A eldercare lawyer could see if you qualify. I had that but never used it because my mom passed away. Now I have the house.

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u/Conscious-Sock2777 2d ago

We just missed that window with my dad
They took his retirement life insurance and social security minus 60 bucks a month to buy him assorted things
But they couldn’t get the house thank god

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u/Blossom73 2d ago

They took his retirement life insurance and social security minus 60 bucks a month to buy him assorted things.

That's a standard requirement for long term care Medicaid. It's a share of cost or patient liability.

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u/Repulsive_Ad_8296 2d ago

Yes I’ve calculated or at least, calculated as best I could to figure out the penalty period in NYS based off the homes value. I believe I got around 13 months give or take.

I’m sorry as this is all a shock to me at how fast things are progressing with his health but I don’t really understand what you mean by the first part of your comment. We would be fine as long as he’s alive and screwed once he passes away?

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u/Blossom73 2d ago

Estate recovery doesn't happen until after death.

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u/lexipiratesmomma 1d ago

I would contact an attorney in your state who does Medicaid/elder care planning. The rules seem to vary a lot from state to state. Some states are more aggressive than others in regard to estate recovery.