Family want to let him live there til death and anticipate ‘living in’ themselves or paid caregivers in order to give care.
It is unknown if he will have enough money for expenses to end of life.
What if he does ‘spend down’ and need Medicaid? Could they reclaim his sold home because it sold so late in his life? How many years must pass before Medicaid is not entitled to ‘estate recovery’ laws?
And where to find the laws on this situation in state of KY?
Or do you know another way to handle this home owner situation that is most advantageous to the financial well-being of an elderly person?
But first talk to an attorney that is familiar with the laws and rules in your state regarding Medicaid.
My Dad had around the clock caregivers [3 shifts per day] when living on his own as he was a major fall risk and paying $20k per month, but he decided it was waaaay cheaper for him to move to Independent Living facility which was $5k per month.... then later into Assisted Living/Memory care at $7k per month.
My Dad was so glad to get rid of his house, because at 94 he was just too tired to maintain the house, even when hiring tradesmen. What is next, needing a new roof? What if the appliances reach their expiration date? Oops, another plumbing leak? He was happy to no longer pay real estate tax... homeowners insurance.... saved money on groceries as the facility offered meals in their dining room.... no more worry about lawn care, or shoveling snow in winter.
There are elders your Dad's age who remember way back when their grandparents needed to go into a "home". Usually what was available was the county asylum which was a horrible place. Our elders don't know that there are Independent Living and Assisted living which are more like living in a hotel. I know my Dad was pleasantly surprised when he first visited such a place.... he right away asked "where to I sign up?", he was ready to move :)
I want to give him all the information possible in order for him to make a sound choice. Others response below to see attorney Is best too. So far he has refused to do this. He has a huge ego and is very stubborn. This will take time with him. I should just go see an attorney about it myself and then explain it to him. Maybe then he’d go himself. Unless anyone knows the ‘magic word(s)?’
If you are going to buy the house and you think that he will need Medicaid during the look back period it is important that you pay fair market value for the house.
Get comps from a realtor and keep them in a file to prove that the house was purchased at FMV.
The most important thing you should do to protect dad is document, document, document.
Just read responses, so some redundancy. One thing that you should consult about with the attorney is a qualified income trust aka Miller trust, that is what will be required if his income exceeds the Medicaid limit, but he doesn't have enough money to pay for care. This would come into play when he has exhausted his assets.