Real Estate Spending as Part of the Spenddown

In numerous blogs, I have pointed out that real estate expenses are part of the spenddown to Medicaid.

However, sometimes such expenses may raise questions.

For example, in a recent blog (entitled: "Step-Transaction Doctrine"), an interesting issue arises.

Suppose a parent is going to transfer the house to a child because the child provided the necessary care to allow the parent to remain home. We are aware that such transfers are exempt.

The question then becomes can expenses be incurred by the parent before the transfer as part of the spenddown or would Medicaid apply the step-transaction doctrine and say such expenses were for the benefit of the child.

I have spoken to several supervisors and they have taken the position that so long as the expenses were paid while the potential applicant is residing in the home they will not be treated as transfers and be part of the spenddown. I was surprised by such result, but it just points out that you have to inquire even if you are in doubt regarding Medicaid issues.

Disclaimer: This article does not constitute legal advice and each person may have unique facts for which legal consultation may be necessary.

© January 2012, Post 178