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My m-in-law, 89 has dementia. She draws $3k/month. She owns her home but lives with me and her son. Her grandson and wife live in her home and plan to purchase the house after she passes.
IF we come to the point that we cannot care for her any longer and we place her in a nursing home, how does the nursing home get paid? Do they expect full amount of cash per month or do they place a lien on the house?
Thanks in advance.

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You may want to talk to an elder lawyer.

IMO, the grandson may want to buy the house now. It has to be at market value. I say this because if she ends up on Medicaid, they will put a lien on that house when she passes. It may have to be sold, at Market Value to cover the lien. Another problem is them living in the house if she needs Medicaid. Medicaid may want them to pay rent.

If grandson buys it now, that money will need to go into an account for her needs. It would pay for a nice place where she could be cared for.
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The nursing home will charge you the full self pay amount. When she spends down to the state threshold for allowable assets the application for Mediciad LTC will be submitted. When on Mediciad LTC, all of the income less her personal allowance will be the personal portion of the LTC and Mediciad will pay the differance of the amount that the state has set for Medicaid LTC.

I strongly advise you to see an elder care attorney with knowledge of the state rules and regulations. Because of the house and the arrangement between her and the grandson this is not a DIY. This cost is an allowable expense and will be paid by her. At the bare minimum if not already done she should set up POA, living will, MOLST, prepaid funeral and update her will.
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