Real Estate Exemption for Medicaid Eligibility
Medicaid will pay for home care or nursing home care if the applicant’s available, countable resources are less than $2,000. An allowance called the Community Spouse Resource Allowance is available for Medicaid applicants who are married. If Medicaid discovers an applicant has transferred property five years before trying to get Medicaid, they may be hit with a “transfer penalty” that triggers a period of time in which they are disqualified from Medicaid. However, real estate exemptions exist that do not interfere with being approved for Medicaid.
What Does Medicaid Consider a Real Estate Exemption?
Generally, all real property is designated as a resource when you apply for Medicaid. However, in Florida there are particular Medicaid exemptions that allow an applicant to protect and keep their home. Not all property is exempt and it is important to consult with a professional to know what property is exempt and to what extent. Medicaid applicants owning homes that do not meet exemptions could have their real estate property temporarily exempted for about six months if they have to enter an elder care facility. Inability to return to the home after six months could result in Medicaid demanding the property be put up for sale in order for the person to remain eligible for Medicaid.
Exceptions to Medicaid Rules about “Gifting” Real Estate
A primary residence may be transferred without triggering transfer penalties if the residence is transferred to a spouse, children under 21 years old, disabled or blind children, siblings living in the home for at least one year who have equity and adult children who are caregivers.
In addition to real estate, Medicaid also allows for other exemptions, including automobiles, appliances, heirlooms, life insurance less than $2,500 and IRAs/401ks if they are properly structured.
If you or a loved one has applied for Medicaid and been turned down due to issues with owning real estate, contact an elder law lawyer at The Mattar Firm to schedule a free consultation appointment. We may be able to help you get approved for Medicaid by examining your circumstances, assets and other resources and finding ways to reduce your income to meet Medicaid eligibility guidelines.