Additional Advantages of Dependent Relative Residing in Home of Applicant

In Post 14, it was discussed that a dependent relative living in the home of a Medicaid applicant results in the exclusion of the home from consideration as a resource. There is no time requirement for the dependency to occur.

This is unlike the two-year rule pursuant to which a child must reside for two years in the home with the applicant before institutionalization for the house to be transferred without transfer penalty.

Therefore, if it is anticipated that an individual will be entering a nursing home in the near future, a dependent relative should move into the residence.

The results of such planning would be as follows:

1. The home would be excludable as a resource.
2. The home would not be subject to the Medicaid lien upon the death of the Medicaid recipient until such time as the dependent relative dies, sells the property or moves out. As discussed in prior postings, the nature of the dependency is very broad.

Of course, should a child reside in the house with the applicant for two years and provide the care necessary for the applicant to reside at home, this would be preferable. In such case, the home could be transferred to the child and permanently free of the Medicaid lien. This planning is discussed in prior postings (see particularly Post 6).


Disclaimer: This article does not constitute legal advice and each person may have unique facts for which legal consultation may be necessary.
© July 2011, Post 154