What Happens to a Home When a Virginia Senior Enters a Nursing Home?
Your home is more than just a piece of property; it’s a symbol of your family history, your vision, and your security. If an aging parent requires admission to a nursing facility, the question of whether the house will have to be sold to cover the expenses of long-term care is likely to loom over the family. The decision will depend on various criteria, such as whether Medicaid qualification is met and the legalities involved in the disposition of the property.
Nursing home costs in Virginia
Long-term care is an expensive endeavor. For instance, in Virginia, long-term care costs in a nursing home can be up to several thousand dollars per month. This can quickly leave many seniors without money, forcing them to enroll in Medicaid programs.
Many believe that the moment a senior enrolls in a nursing facility, Medicaid automatically owns the senior’s house. However, this process is far from simple.
Does the home count as an asset?
In many cases, a person’s house will be exempt from Medicaid eligibility requirements. In other words, a senior will remain eligible for benefits even if they own a house.
This could be because the senior intends to come back home someday or there is another family member living in the house. Nevertheless, the fact that a senior’s house is exempted in their lifetime does not guarantee that the house is exempted forever.
Once the senior passes, the state can make attempts to recover any funds that were paid using the Medicaid estate recovery program.
What is a Medicaid estate recovery?
Virginia participates in the Estate Recovery Program for Medicaid. If a Medicaid recipient dies, then the state can try to recover payments made on his behalf for long-term care.
The property can be liquidated to pay off any debts owed by the decedent. It is usually shocking news to the families that their house will be sold to pay off debts since they thought that the house had been completely shielded from all debts.
There are some circumstances under which the recovery program cannot proceed. If there are certain surviving relatives of the Medicaid recipient, such as a spouse, disabled child, or caregiver child living in the home, then the recovery process will not continue.
Planning ahead can protect your home
Elder law planning is beneficial in helping family members save money and prevent financial distress. There are various legal options available that might assist in protecting your home from future Medicaid liens. However, timing plays a vital role since Medicaid has a lookback period of five years for all property transfers prior to filing for the program. It would be wise for families not to make any major financial moves without legal assistance.
Talk to a Virginia Beach, VA, Elder Law Attorney Today
The Law Office of Angela N. Manz represents the interests of Virginia Beach residents who need help with their estate plan. Call our Virginia Beach elder law attorney today to schedule an appointment, and we can begin discussing your next steps right away.