Protecting Home From Liens

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Summary

In Pennsylvania, the Medicaid Estate Recovery program might place a lien on a property. To protect your parents home, consider transferring the property to a trust, applying for a hardship waiver, or transferring the property to a child under certain conditions. Selling a home for significantly below its market value could be viewed as a gift under Medicaid rules, potentially causing a penalty period during which Medicaid wouldnt cover long-term care costs. Consult a legal expert for personalized advice.

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In Bucks County Pennsylvania, my parents own a home. Both are severely ill and need nursing home. How can we protect their home from getting a lien?
Hello Denise, in Pennsylvania, the Medicaid Estate Recovery program might place a lien on a property. To protect your parent's home, consider:
- Transferring the property to a trust
- Applying for a hardship waiver
- Transferring the property to a child under certain conditions
Please consult a legal expert for personalized advice.
How does transferring the property to a child protect the home?
Transferring property to a child could potentially protect it in two ways:
- The property may be exempt from Medicaid's asset test.
- It might avoid Medicaid Estate Recovery claims after the parent's death.
Please note this strategy carries risks and should be discussed with a legal expert.
What if I purchase the home for $*?
Selling a home for significantly below its market value could be viewed as a "gift" under Medicaid rules, potentially causing a penalty period during which Medicaid wouldn't cover long-term care costs. Consult a legal expert for advice.