Inaccessible Resources

In Post 138, I discussed the advantages of holding an inaccessible resource (jointly held real estate) with a relative.

Suppose a Medicaid applicant owns real estate jointly (either a joint tenancy or a tenancy in common) with a non-relative. The affects of such arrangements are as follows:

1. The individual will qualify for Medicaid since the real estate is an inaccessible resource.
2. Unlike Post 138, the real estate cannot be transferred without a penalty.
3. Further upon the death of a Medicaid recipient, the Medicaid outlay will be subjected to the Medicaid lien.
4. In addition, if the property is income-producing, one-half the "net" income must be used to reduce the Medicaid reimbursement rate. The net income is determined without considering "paper" deductions such as depreciation.




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 #152