sale of condo in colorado
My father has around 4 months of funds for private pay care, before he has to apply for medicaid, we have been unable to sell his home. Will the facility take possession of the property if denied by medicaid? If the home is sold before medicaid process, how are the funds divided? Can he gift large amounts to his children without any penalities?
Re: sale of condo in colorado
The nursing home cannot just take your father's home. However, if he cannot qualify for Medicaid, he may be required to sell it or face possible eviction from the nursing home for non-payment once his cash resources run out.
If your father sells his home, the proceeds of the sale would go to your father. Any gift transfers to his children would result in a Medicaid penalty period. He could use the proceeds of the home sale to pay privately for his care, but that may not be the best plan, depending upon what other assets and income he has.
If your father does not sell his home, he would be eligible for Medicaid once his non-exempt resources are spent down to $2,000. His home is an exempt resource for purposes of Medicaid eligibility. While there may be estate recovery issues later on, he could become eligible for Medicaid sooner if no gifts are made.
I would recommend that you meet with an Elder Law attorney to discuss this in more detail.
