Medicaid eligibility

Question:

My wife’s sisters inherited property from their deceased father outside of probate. The two sisters own the property jointly through a lady bird deed. Does that have to be reported to Medicaid if one of the sisters is receiving benefits?

Response:

Yes. The two sisters now own the property jointly. In most instances, Medicaid requires that applicants or beneficiaries report all their assets and any change in circumstances.

Whether this will actually affect the sister’s eligibility for benefits depends on a number of factors, including the type of Medicaid she is receiving, whether she is living in the house, and the rules in her state. In addition, if the other sister refuses to sell the property, it might be treated as an inaccessible asset. Or, if the sisters rent out the property, it may be exempt under an exception for business property essential for self support.

In other words, the fact that the sister is now one-half owner of the property must be reported, but it may not have any impact on her continuing eligibility for benefits.A local elder law attorney could advise on the impact of reporting the property interest in the sister’s particular situation.

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