What is a Life Estate . . .
A life estate is a legal right to live in a home as long as the life estate holder lives. That right is reflected on the deed so it is more than simply a lease for life. The ownership, in essence, is divided into two parts. An individual who owns
What if the Medicaid Applicant’s Family is Living at Home?
If a family member is living in the home, New Jersey Medicaid has a policy of not forcing the sale but, again, someone other than the applicant must pay the taxes, insurance, maintenance etc. on the home. This remains an option, however, for holding onto the home. When the Medicaid
Must a single New Jersey Homeowner Sell the Home to Qualify for Medicaid?
In the case of a single homeowner, it may also be advisable to keep the home as long as possible, although it is a bit more complicated. The reason for this is that Medicaid rules allow the applicant’s home to remain an exempt asset as long as there is a
When Does Selling the Home Hurt When it Comes to New Jersey Medicaid?
In the case of a married couple the mistake families often make is to sell the home when funds begin to dwindle. They may very well desire to downsize, move in with a child, rent, etc. and we may agree that this is the best plan under normal circumstances. However,
. How Does New Jersey Medicaid Treat the Home?
The home is very often the biggest single asset our clients own and in some cases the only asset. Many of the Medicaid rules apply specifically to the home that don’t apply to any other asset so it is a focal point of our guidance as elder law attorneys. Additionally,
What Transfers Does New Jersey Consider to Be Exempt from Medicaid Transfer Rules? (Part 2)
We talked about the transfers of the home that are exempt from New Jersey's Medicaid penalty but what about assets other than the home? The following transfers are also exempt: 1. Assets transferred to the spouse or for the benefit of the spouse as long as the spouse didn’t then transfer
More on New Jersey’s Transfer of Home to Caregiver Child Exception
The child caregiver exception to Medicaid transfer rules is one that many people focus on in an effort to protect the home and transfer it from parent to child. It is also one that New Jersey Medicaid scrutinizes very closely. New Jersey has rejected this exception where the child had
What Transfers Does New Jersey Consider to Be Exempt from Medicaid Transfer Penalty Rules? (Part 1)
Not all transfers are subject to a transfer penalty. The home in many ways gets special status, including when it comes to transfer rules. The following transfer of the applicant’s home is exempt if made to: 1. The Medicaid applicant’s spouse 2. A child of the Medicaid applicant under age 21 or
Will New Jersey Medicaid Reduce a Penalty if Assets are Returned?
So, a penalty has been imposed by Medicaid. Now what do you do? Can you return the assets? How about returning some but not all of the assets? On May 26, 2010, New Jersey issued a Medicaid Communication providing that in order to reduce the penalty period, all transfers for
What is a Medicaid “But For” Letter?
We talked last week about New Jersey’s Medicaid transfer penalty, but what exactly is a “but for” letter? As I explained , the Medicaid penalty doesn’t start when the transfer of assets is made, but only after the other requirements are met, meaning the application is filed and all the