The Family Caregiver Exception is one opportunity available to protect the family home from nursing home spending. Generally, there is a 5 year ineligibility for Medicaid qualification that results from a transfer of the family residence to a child. However, there is no penalty for a transfer of a primary residence if a son or daughter lived with mom or dad for the two years preceding mom or dad moving to a nursing home. Further, the child must prove that he or she provided care that allowed them to stay at home and prevented mom or dad from going to a nursing home during that two year period.
I recently answered a question posed by a reader on AVVO regarding this family caregiver exception and thought you might like to take a look at that commentary here. Here is the relevant federal statutory provision 42 U.S.C. §1396 p (C) (2)(A)(iv). This is an important provision and could provide significant economic protection if utilized properly.
Please feel free to contact Douglas L. Kaune, Esq. to discuss your particular Medicaid Asset Protection, Nursing Home or Elder law case to determine the appropriate planning for you and your family.