Tag Archives: deed
By: Erin R. Solaiman, Attorney at Law. Macomb County, Michigan. The simple answer to this question is, “yes.” However, if you have spent any time at all helping your parents plan for the unfortunate event that they might have to enter a nursing home, you know that “simplicity” is a luxury not often afforded in this situation. In Michigan to qualify for Medicaid, a single person can have no more than $2,000 in assets. The primary residence and one car are exempt, as long as they are not owned by a trust. Therefore; on many occasions, prior estate planning may need to be changed to fit the situation. Because we are unable to use a Quit Claim Deed, in most circumstances a Ladybird Deed is used to ensure that the individual’s primary residence avoids probate. Any individual that receives Medicaid assistance is subject to Estate Recovery if their assets go through probate. Under the current law, the key is to avoid probate. Under the Estate Recovery program, the Michigan Department of Community Health (MDCH) will seek repayment of benefits received by Medicaid recipients by filing a lien on an individual’s probate estate. The liens can be placed for no more than the amount spent on the individual’s care. With the rising costs of nursing home care, a one to two year stay in a long term care facility can deplete a majority, if not all, of the value of the home! There are many complex scenarios and restrictions on the treatment of the home for Medicaid purposes, and many strategic plans that can be used to protect the parent’s home and the family’s heirs. The best way to discuss your specific scenario and develop the best overall plan is to meet with the experienced staff of Elder Law Attorneys at Simasko, Simasko & Simasko, P.C. Call today to schedule your FREE consultation. As always, remember that it is better to look ahead with preparedness than to look back with regret!