Payment of Nursing Home Costs and Credit Card Debt

[myjo24de]

My question involves a person located in the state of: NY

Dad has a life tenancy in his home and the home was signed over to myself and 2 siblings > 5 yrs ago. All 3 of us have POA.
He was on Community Medicaid until he was permanently transferred to a Nursing Home on 2/26/18. No one currently living in the house.
Dad's income consists of Soc. Sec, and 2 pensions.
Dad has credit card debt < $5000.

Nursing home informs me that all his income deposited into his checking acct. is technically theirs as of 3/1/18. So I cannot use that money to pay any of dad's bills. If I do use trhat money NH will sent their bill to me.

We are in the process of putting the house up for sale, but in the interim, I will be paying out of pocket for for household expenses, ie: fuel oil, electric, lawn maintenance, etc.

Question(s): Should I contact Credit Card and ask that they "write off" amount owed d/t NH admission? Should dad file chapter 7?
Is "Lifetime Tenancy" considered part ownership as long as dad is alive and can Credit Card Company put a lien on the house?

Very much appreciate any/all assistance.

[adjusterjack]

Should I contact Credit Card and ask that they "write off" amount owed d/t NH admission?

Don't bother. They aren't going to write it off just because you request it.

Should dad file chapter 7?

Shouldn't have to. If he's got no income other than social security and qualified retirement funds, he'd be judgment proof. Those are exempt from judgment.

Is "Lifetime Tenancy" considered part ownership as long as dad is alive and

I don't think so. Wouldn't matter anyway as he will have to revoke his life tenancy for the house to be sold.

Though you would be wise to consult an elder law practitioner with regard to that issue.

can Credit Card Company put a lien on the house?

No.

Even if your Dad was sued and lost, he doesn't own the home so a lien would not attach.

[myjo24de]

Thanks.

I was asking if life tenancy meant dad was part owner because I recall a lawyer once told me that if the house was sold while dad was alive, he would get a prorated amount of the sale...and that's why I asked if a lien could be placed on the house.

[Mr. Knowitall]

The cost and burden of trying to impose and enforce a lien on a life estate would not be worth it to a typical creditor, as life estates are difficult to market, are rarely sold, and usually expire with the life tenant at which time any lien against the life estate would become worthless.

[Mercy&Grace]

Why is he no longer eligible for Medicaid ? Did he became eligible for the pensions and/or social security when he was transferred to the nursing home ?

[Mr. Knowitall]

Why is he no longer eligible for Medicaid ? Did he became eligible for the pensions and/or social security when he was transferred to the nursing home ?

I suspect that he transitioned from the Community Medicaid program that allowed him to receive benefits for home based care, to an Institutional Medicaid plan that covers institutional care.

[Mercy&Grace]

Mr Knowitall, thanks.