House Co-Owned by Sisters, One May Go Into a Nursing Home

My question involves estate proceedings in the state of: Indiana

My 2 sisters and I were left our parents home. Title is in all of our names with upon death of one, it goes to the next 2, until only 1 is left. Older sister may have to go into a nursing home and be on Medicaid and we (other 2) are wondering how we can protect ourselves from them taking the house or at least 1/3 of it?

Thanks.

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Quoting inmom

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My question involves estate proceedings in the state of: Indiana

My 2 sisters and I were left our parents home. Title is in all of our names with upon death of one, it goes to the next 2, until only 1 is left. Older sister may have to go into a nursing home and be on Medicaid and we (other 2) are wondering how we can protect ourselves from them taking the house or at least 1/3 of it?

Thanks.

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Does family live in the home? If so, who? Do you rent it out? What is actually happening with the home makes a huge difference as far as Medicaid is concerned.

While you are alive, you have no problem. Medicaid rightfully has the right to recover it from any sale or transfer subsequent to your death.

Yes, family lives in home. My other sister (not the one to go into nursing home). One of the 3 owners. We all pay for remaining 2nd mortgage mother took out, and taxes & insurance. Sister living there pays all utilities.


Flyingron... don't understand. It is regarding my older sister. We have no plans to sell as one of the sister owners is living in it. We want to know if Medicare can take 1/3 of the home if older sister (one of the sister owners) has to go into a nursing home on Medicaid.

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Quoting inmom

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Yes, family lives in home. My other sister (not the one to go into nursing home). One of the 3 owners. We all pay for remaining 2nd mortgage mother took out, and taxes & insurance. Sister living there pays all utilities.


Flyingron... don't understand. It is regarding my older sister. We have no plans to sell as one of the sister owners is living in it. We want to know if Medicare can take 1/3 of the home if older sister (one of the sister owners) has to go into a nursing home on Medicaid.

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I know for certain that if one of the owners is living and will continue living in the home that Medicaid cannot take the home while she is living. However, they may be able to put a lien on it that will allow them to get 1/3rd of it after the owner living there passes away. If you want to be certain about the second part you probably should consult a local attorney that specializes in Medicaid issues.

Does anyone know the answer to this: I was told that even if 1 of the owners lives in the house, they must pay "fair market" rent to the other 2. Is this true? The one living there is paying the mortgage as her rent. All 3 are paying taxes and insurance. However I was told that they must pay rent to the other 2 and then this rental income would go to Medicaid for the sister in the nursing home on Medicaid.

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Quoting inmom

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Does anyone know the answer to this: I was told that even if 1 of the owners lives in the house, they must pay "fair market" rent to the other 2. Is this true? The one living there is paying the mortgage as her rent. All 3 are paying taxes and insurance. However I was told that they must pay rent to the other 2 and then this rental income would go to Medicaid for the sister in the nursing home on Medicaid.

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What was the source of this information? You should take any information you receive with a grain of salt until or unless its confirmed by a local attorney that specializes in Medicaid issues/estate planning.

I agree with LL. About the only thing that will screw you with medicaid is transferring ownership AWAY form the sister in the nursing home at other the FMV. There's no obligation to collect rent or whatever.

Nursing homes have a great interest in making sure that they get the patients in and set up so that their expenses can be paid for by Medicaid. The social worker at the nursing home can give you a lot of generic explanations about how this all happens. The department of human services that administers Medicaid in your state will have lots of booklets and information on line about how Medicaid deals with an asset like a third ownership of this property in which she and this other sister reside. Someone representing your sister will have to go through the application process with the Medicaid administrators.

I strongly agree with above that the only really awful screw up you could make is if you begin trying to transfer your sister's assets away from her in a deliberate attempt to avoid her having to use these assets (which she should legitimately be using) to cover her medical expenses in her old age. This deliberate manipulation of assets to avoid paying will result in sanctions, where she cannot be put on Medicaid for a certain amount of time, which would be financially disastrous to your family.