Expert: Dick Dennis - 12/3/2008

Question
QUESTION: my 87 year old mom deeded her home over to me and maintained a Le interest in it.

she is now in a nursing home and wont be able to return home.
she also was granted medicaid.

my question is, now  that she is no longer living in the home and her money is being taken by medicaid i am responsible for all the homes expenses.

am i able to rent that home to pay for the expenses ?
and if i do does medicaid get the rent?
and are the taxes etc deducted first?

thank-you.

ANSWER: You may need to talk to an ESTATE attorney, Tom, to make sure THAT house will not be taken by medicaid, too! Especially if your mother owned the house without any liens or mortgages. There is a certain amount of time, usually within a year, that medicaid can claim any and all assets. That's why you need to talk to that attorney. There are certain ways of evading that. Talk to that ESTATE attorney. I wish you well.

Dick Dennis      dixiedee13@aol.com

---------- FOLLOW-UP ----------

QUESTION: thanks for the quick response.
but, there is NO way medicaid can take this home.
that is not even an issue.
they claim ONLY the LE interest if i sell the home prior to her death.

But i need to cover expenses so am wondering if i may rent it out.

Answer
Tom, it is obvious you know nothing about life estate. A life estate is retained usually by the person who sells or conveys title to the property. The life estate is valid for as long as that person maintains the property and lives there. But when she moves, for any reason, the life estate is no longer in effect.

Therefore, you, as the owner, may do as you please with the property, including renting it out. As for medicaid getting anything from that house, since you do not believe me, I strongly suggest you consult with an ESTATE attorney. Do not consult me anymore, you apparently know more than me . . . or you think so.

Dick Dennis