Will Medicaid claim the home that my family is living in after my grandparents pass?

3 answers | Last updated: Sep 24, 2016
Modernbaloney asked...

i am hoping to find an answer for this rather mundane issue, though i have looked everywhere, none of the resolutions pertain to my situation.

So i am living in a household of 5 people including myself (my mother, cousin and both grandparents) in california. the house is under both my grandparent's names and they are not done paying off the mortgage yet. Both of them have medi-cal and medicaid.

My question is, when both of them pass away, will medicaid claim the home and leave my mother, cousin and myself out of a place to live?

Expert Answers

Barbara Steinberg is the CEO and founder of BLS Eldercare Financial Solutions, which specializes in helping families pay for long-term care for their loved ones. A registered financial gerontologist, she speaks regularly on the topic of paying for long-term care and is a financial expert for Caring.com.

First, let's look at the situation from a Medicaid point-of-view. If your mother has lived in her parents' house and taken care of them for at least 2 years, your mother may retain ownership of the house. There must be documentation proving that your mother's permanent address is the house and that she cared for her parents.

The stickler is that your grandparents have a mortgage. If the title to the house is transferred to your mother, the existing mortgage will become due (unless it can be assigned). If your mother cannot pay off the mortgage, she will need to get a new mortgage in her name.

Medicaid doesn't take anyone's home. They put a lien on the property so that when it is sold, the government gets reimbursed for the money spent for your granparents' care.

Community Answers

Modernbaloney answered...

first of all thank you so much for your reply!

My mother doesn't have any credit. can the existing mortagage be transferred to my mother's name even though she doesn't have credit? Ultimately, she wouldn't be able to get a new mortgage due to these circumstances.

So if the house cannot be transferred to anyone's name, what will happen?

Picasa answered...

I cannot help putting my 2 cents in on this one. The State has been helping the 2 grandparents and the mother and cousin and writer of the question have been living in the house,hopefully contributing something. The grandparents may also be on food stamps and no one is mentioning if the rest of the family is working or getting welfare checks, Medicaid, etc. also. I think they all should start looking to the future for employment so they can afford rent as the Government will want to recoup some of their money when the old folks are gone. I am 73, soon to be 74 and STILL WORKING and my house will, in 3 months be fully paid up due to my hard work as a woman alone. Too many people get too much from the government as it is.