Loveland, OH asked in Estate Planning, Family Law and Elder Law for Ohio

Q: Medicaid estate recovery

My mother-in-law received Medicaid benefits while she was in a nursing home. Upon her death the house and other assets were left alone as her husband was still alive. If us kids sell his house and vehicle before he dies will the state of Ohio stop the sale? If not, what happens when my father-in-law passes? My understanding is that estate recovery will come into play once he passes. I'm not sure what happens before and/or after that should we sell his assets.

1 Lawyer Answer
Moshe Toron
Moshe Toron
Answered
  • Estate Planning Lawyer
  • Cincinnati, OH
  • Licensed in Ohio

A: If you sell the house now, Medicaid cannot take any of the sales proceeds, since your father-in-law is still alive. He can then spend the money as he sees fit on items for himself. Once he passes, then technically, Medicaid has a claim against the remaining funds from the sale. However, with some good planning while he is still alive, an elder law attorney can help you legitimately avoid paying Medicaid back, if you sell the house while he is still alive.

If he keeps the house and then you sell it after he passes, then Medicaid can make a claim against the house sale proceeds at the closing.

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