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  1. #1
    Join Date
    Aug 2009
    Posts
    22

    Default Payment of Nursing Home Costs and Credit Card Debt

    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.

  2. #2
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Elder Law Nursing Home and Credit Card Debt

    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.

  3. #3
    Join Date
    Aug 2009
    Posts
    22

    Default Re: Elder Law Nursing Home and Credit Card Debt

    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.

  4. #4
    Join Date
    Sep 2005
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    98,846

    Default Re: Elder Law Nursing Home and Credit Card Debt

    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.

  5. #5
    Join Date
    Jun 2014
    Posts
    3,212

    Default Re: Elder Law Nursing Home and Credit Card Debt

    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 ?

  6. #6
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    Sep 2005
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    98,846

    Default Re: Elder Law Nursing Home and Credit Card Debt

    Quote Quoting Mercy&Grace
    View Post
    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.

  7. #7
    Join Date
    Jun 2014
    Posts
    3,212

    Default Re: Elder Law Nursing Home and Credit Card Debt

    Mr Knowitall, thanks.

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