A daughter quit her job to care for her mother, then Medicaid placed a lien on the family house to recover costs. Jerry Taylor explains how Medicaid recovery works, why the caregiver loses inheritance while other siblings don't, and how an irrevocable trust five years before care is needed can protect the home.
She quit her job to take care of mom for 3 years. Then Medicaid took the house anyway. Here's what happens. Your mom needs nursing home care. Medicaid pays the bills. 5, 6, sometimes 8 years of $8,000 a month care. When mom dies, Medicaid wants its money back and they put a lien on the house. It's called Medicaid recovery. The daughter who quit her job to do this, she's the one who loses her inheritance. And the son who lived 3 states away and never came home, He loses nothing because there was nothing left to inherit. The only way to stop it is an irrevocable Medicaid asset protection trust. It has to be drafted at least 5 years before mom needs the care because there's a 5-year lookback period. So either you plan early or you watch the house go to the state. I'll be covering this in my free workshop. Comment "workshop" and I'll send you the link to register.
comment workshop.free still need plan to keep people out of court. learn how to in less than an hour
