Should I Maintain a Property Likely to Be Taken By Medicaid?

Question:

My sister is in a nursing home for the rest of her life, and I have POA. Her care is paid by Medicaid. We pay utilities and property taxes on her vacant trailer to maintain it. Medicaid wants us to use our sister’s small income to pay the nursing home bills. Should we? Her income isn’t even enough to pay the utilities on the trailer.

Answer:

So, you are paying taxes and utilities on a loved one’s vacant trailer. Even if Medicaid permits your sister to keep it, it’s very likely to be subject to Medicaid’s claim for reimbursement upon her death. If that’s the case, it would not be worth the cost and effort of maintaining it. It may make more sense to sell the property.

Medicaid and Long-Term Care Basics

When using Medicaid to pay for long-term care expenses, estate recovery is often a condition for benefit eligibility that allows the agency to recoup health care costs later. A home may be the only asset of significant value. We recommend consulting with a local elder law attorney because Medicaid rules differ from state to state.