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Going through the Medicaid eligibility with my mother. House is well past the 5 year look back. Mom has been living on the property rent free with the expectation that she pay the taxes and do repairs needed while living there for as long as she is able to live there. She is in a home now(7 months). Will any of the costs associated with repairs to the place while she was living there affect her eligibility?

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A verbal agreement? Not at all binding. All expenses associated with the home must be paid by others. Those are your responsibility. Medicaid qualification is going to be a problem. You need an elder law attorney that specializes in Medicaid eligibility.
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Twinbrow Dec 2022
After seeing that I remember the Attorney saying that even a basic rental agreement that spells it out is sufficient. We did a permanent rental agreement that spelled it out. Just need to find it. One of the 15 different forms filled out 12 years ago. Thanks for the memory jog. However, wish me luck in finding it. It's....somewhere in my files.
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What does the paperwork from the Life Estate say? Were the expectations spelled out on paper when you all signed on?
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Please can you explain exactly what has happened with this house. ‘Life Estate but not Life Estate’ means almost nothing. Is there a formal Life Estate registered with the Deeds? Or did it belong to M and she transferred it to you as a gift, subject only to your verbal agreement about her living there and paying outgoings? Or what?

If the gift is past the look-back period, the money she spent on outgoings was not a ‘gift’ to you as the actual owner, but an agreed payment in lieu of rent. That’s at least one way to put it. My guess is that you are OK with Medicaid, but it’s worth checking.

You might also want to check if you would have needed to pay Income Tax on rent, and if so whether the payments in lieu of rent might be regarded as your taxable income. So check which way costs you all less, and also how good the computer cross-checks are between Medicaid and Income Tax in your State.

It's not the case that verbal agreements don't ever have legal standing. But they need to be credible - which the above is, and is evidenced by non-payment of rent and payment of outgoings.
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Twinbrow Dec 2022
Yes,

The house was gifted over 5 years ago so its beyond the look back. New heating system and converted well(mud coming through the pipes) are within the 5 years. But as you mentioned, I never collected base rent ~$72K over 5 years while she spent about $23K on property tax and upkeep. My attorney mentioned something a few years ago about not being indentured to our parents and agreements like this are not unusual or out of line. My call is in 3 hours. Lets see how the wonderful state of Oregon receives this information.
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It was just an agreement with my mom and I. Never charged her rent and she lived on the property. Never had an official agreement as this was well before her need for care.
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You will eventually need a lawyer competent in home sales so make an appointment. This legal expert and your situation should be part of his bread and butter duties.
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So, mom gifted you the house more than 5 years ago (on paper?) and has been living there. She has been paying the taxes, repairs, etc.

And now mom needs Medicaid funding for long term care, right?

So, you OWN the house, yes? The deed has YOUR name on it?

So, YOU are responsible for its upkeep. If you can't afford to keep it up and pay the taxes, you sell it and buy something that you CAN afford.
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