Minneapolis, MN asked in Real Estate Law and Elder Law for Ohio

Q: If I go 50/50 on a house with my parents and they pay the mortgage to me as rent, could Medicaid put a lien on it?

My parents are in their 70s and my father isn't in the best health.

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1 Lawyer Answer
Andrew Popp
Andrew Popp
  • Elder Law Lawyer
  • Cuyahoga Falls, OH
  • Licensed in Ohio

A: You're walking a fine line here. Ohio Medicaid presumes that transfers to family members are "improper" under the Medicaid rules. The burden is on you to prove otherwise.

Issue 1: Could Medicaid put a lien on the house? - It depends on how title to the home is held. If they are 50% owners, then yes, Medicaid could potentially place a lien on the house in certain circumstances.

Issue 2: Parents paying you the mortgage as rent. - The arrangement needs to comply with the Medicaid rules or those funds may result in a penalty requiring you return all the money they paid you. As above, the details of the purchase and language in the deed can be very significant.

All in all, Medicaid planning is complex. You need to sit down with a qualified attorney to review the situation in detail and advise you.

Best of luck.

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