Myra from Wentzville wants to pass her home to her children. She signed a beneficiary deed naming her two children as owners of the home upon her passing. Myra wants to know if that beneficiary deed will protect her home from Medicaid?
In short, no, a beneficiary deed does not protect your home from Medicaid. A beneficiary deed is a probate avoidance device. http://joneselderlaw.com/using-a-missouri-beneficiary-deed-to-avoid-probate/ While you are living you still own the home. The beneficiary part of the deed does not take affect until you have passed away. Your children do not take ownership of the home until you pass away.
Missouri Medicaid can file a lien against the property while you are alive. The Missouri Medicaid lien will be for any Medicaid benefits that they pay out on your behalf. Even without filing a lien, there is a case in Missouri that held Missouri Medicaid can seek recovery against real property being transferred by a beneficiary deed. That estate recovery will be for amounts Missouri Medicaid has expended on your behalf. Thus, a beneficiary deed will not protect your home from Missouri Medicaid.
This raises some important points for the family. While Myra is in the nursing home her income except for a small personal needs allowance is paid to the nursing home. Myra will not have any money available to pay for things like power, insurance, property taxes etc. The St. Charles Elder Law Attorneys at Jones Elder Law have seen families pay such expenses for years only to find out Missouri Medicaid has a significant lien or estate recovery against the real estate. Before paying out money, make sure that you understand if the real estate will be protected or Missouri Medicaid will have a significant claim. You don’t want your hard-earned dollars being lost to a property consumed by a lien or estate recovery claim by Missouri Medicaid.
Finally, there are multiple ways to protect your home and make sure it passes to your loved ones free of any lien or estate recovery. Protecting the family home, which is often the single largest asset the family owns, is exactly what the St. Charles Elder Law Attorneys at Jones Elder Law do on a daily basis for their clients. If you are concerned about Missouri Medicaid taking your home, take the time to meet with qualified elder law attorneys and find out your options for really protecting your home.
The preceding information was not and should not be considered legal advice. If you or your family are struggling with Medicaid decisions, make an appointment with the experienced St. Charles Elder Law Attorneys at Jones Elder Law. If we can help guide you, contact our St. Charles Elder Law Firm at (636) 493-3333 and ask if you are eligible for a complimentary Vision Meeting.
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