Q: Medicaid implications of renting room to a parent with Medicare

A: Medicaid Estate Recovery can only claim what your mother has in her name at the time of her death. They will not have any claim on your house because she pays you rent.

A: Renting a room to your mother could have implications for both her Medicaid and Medicare benefits, but it’s unlikely to make her a co-owner of your home solely because she pays rent. Since your mortgage and property are in your name, and there’s no formal rental agreement, the situation may be viewed as more of an informal arrangement. However, it’s still important to be cautious about the potential for Medicaid recovery claims, which can sometimes seek to recoup benefits from the estate of a Medicaid recipient after they pass.

In terms of Medicaid, if your mother is receiving long-term care services, Medicaid may seek reimbursement from her estate, but this typically only applies to assets that are in her name or jointly held. As long as your mother is not listed as a co-owner of the property, her payment for utilities likely wouldn’t trigger Medicaid’s estate recovery rules. However, having a rental agreement, even if informal, may be useful to clarify that this is a tenant situation rather than a shared ownership arrangement.

To avoid any future complications, consider keeping detailed records of her rent payments and any correspondence regarding the living arrangement. If you’re still concerned, it’s worth consulting with an attorney or a Medicaid expert who can provide guidance on protecting your property and navigating Medicaid’s recovery rules.