I’m on ssi and Medicaid. I live in my dad’s home with my mom who also gets ssi and Medicaid…Mom and dad never married “”

Question

My dad wants to do a life estate so me, mom and my step-brother can have the house without going through probate.  Will getting the house affect mine and my moms SSI and Medicaid? We are keeping it to live in as our primary residence in RI. My step-brother owns his own home, will that affect his home in anyway?? He won’t be getting any money and there’s no rents involved. It’s for me and mom to have a roof over our heads and continue paying the bills..

James L. Arrasmith · Answer

If your father creates a life estate and transfers the house to you, your mom, and your step-brother, it likely won’t affect your SSI and Medicaid benefits as long as you continue to use the house as your primary residence. For Medicaid, one primary residence is generally considered an exempt asset, meaning it won’t be counted when determining eligibility. Since you and your mom will be living in the house, it would remain exempt under those rules. 
 
However, if your step-brother isn’t living in the house and already owns another home, this shouldn’t affect his home or finances, as he wouldn’t be receiving rental income or selling property. His primary residence is separate from the life estate and should not be impacted by this arrangement. 
 
It’s always good to ensure that the life estate is properly structured, so you and your mom can live in the house without any negative effects on your benefits. The key here is that the house remains your home and isn’t treated as an income-generating property.

Q: I’m on ssi and Medicaid. I live in my dad’s home with my mom who also gets ssi and Medicaid…Mom and dad never married “”