Medicaid Look Back Period

Summary

User purchased a house from her uncle in 2020 for $4,000 and invested $70,000 in renovations. The house was condemned at the time of purchase and its market value before renovations is unknown. The current market value is around $130,000. Her uncle, who is disabled and receives Medicaid, has not yet applied for a nursing home. User is concerned about Missouris Medicaid 5-year look-back period and its potential impact on her property. She was advised that if her uncle applies for Medicaid within this period, the transfer could be penalized based on the difference between the amount she paid and the fair market value at the time of purchase.

Full Conversation

I purchased a house from my Uncle in *. He is now wanting to go into a nursing home but he has medicaid insurance. I just want to make sure there's no 5 year. Look back in Missouri, and they won't take my house. We did a quick claim deed in *
Did you pay fair market value for the house when you purchased it from your uncle in *?

In Missouri, Medicaid does have a *-year look-back period for asset transfers.
I paid $*,*
Did you get the house appraised at the time of purchase to determine its fair market value?

In Missouri, Medicaid can penalize undervalued asset transfers made within the *-year look-back period.
No
In Missouri, Medicaid may consider the house transfer as a gift if it's below market value. It's advisable to get an appraisal now to establish the house's value at the time of purchase.
I had to get a loan to remodel it was a Condemn house
Did you use the loan to increase the value of the house? If so, this could potentially offset the difference between the purchase price and the fair market value.
Yes i have about $*,* invested in it now
What is the current market value of the house after the renovations?
Around $*,* possibly but it was all my money i put into it
What is the current status of your uncle's Medicaid application?
He has not applied for a nursing home yet he is disabled and get medicaid insurance due to his disability
What is your uncle's current living situation and does he have any other assets or income?
He lives with family and no other assests or income
What is the current market value of the house before the renovations?
I am not sure it was Condemned would have been thorn down if i hasnt of bought it
What was the estimated value of the house when it was condemned?
I am not sure maybe *,* i am guessing
What is the current market value of similar houses in your neighborhood?
*,*
What is the current status of the house? Is it still under renovation or is it now habitable?
I live here
What is the address of the house? This will help us to provide you with the contact details of the nearest court if needed.
So if he waits the full 5 years i dont have to worry about my properties?
Yes, if the *-year look-back period passes without your uncle applying for Medicaid long-term care, the house transfer won't be penalized.
* n missouri ave springfield mo *
Based on the information provided, it seems you've invested significantly in the property. However, Missouri Medicaid does have a *-year look-back period. If your uncle applies for Medicaid within this period, the transfer could be penalized.

- Greene County Courthouse, * Boonville Ave, Springfield, MO *, Phone: (*) *-*.
Ok so they can take my house or i would have tonpay the fee?
If your uncle applies for Medicaid within the *-year look-back period, you may have to pay a penalty. The house won't be taken, but the penalty could be substantial.
So based on the Equity I have in it now? It was not apprised when i bought it
The penalty could be based on the difference between the amount you paid and the fair market value at the time of purchase. It's advisable to get an appraisal now.
Ok thank you
You're welcome, Samantha. If you have any more questions in the future, feel free to ask. Good luck with everything.
Thanks
You're welcome, Samantha. Don't hesitate to reach out if you have more questions in the future. Best of luck with your situation.
So i have a home equity loan against the house, what can i do so they dont take my house?
Are you facing difficulties in repaying the home equity loan?
Its a 10 year loan i have obly had it for 2 years
What is the current status of your loan repayments? Are you behind or facing foreclosure?
No i am concered cause I bought the house for my Uncle less than 5 years ago. And I don't want to be affected by the 5 year medicaid book back.
What is the current market value of the house? In Missouri, Medicaid can look back 5 years for asset transfers, potentially affecting eligibility.
*,*
What is the outstanding balance on your home equity loan?

In Missouri, Medicaid's *-year look-back period may affect eligibility if assets were transferred below fair market value.
*,* i am his great neice as well he is currently staying with me as well
What is your uncle's current Medicaid status?

In Missouri, Medicaid can penalize transfers of assets below fair market value within a *-year look-back period.
He is disabled
What is your uncle's current income and asset situation? This information is crucial as Medicaid considers both income and assets when determining eligibility.
He gets disability * a month
Does your uncle have any other assets or income besides the $* monthly disability payment?
What can i do to proect my house i have invested in
What is the current status of your uncle's Medicaid application?
No other income for him
What is the current market value of your uncle's assets, excluding the monthly disability payment?
He has medicaid and has for years
What is the total amount of your uncle's assets, excluding his monthly disability income?
He has none
What is your uncle's current health condition and does he require long-term care?
He is disabed and cannot walk
What is the nature of your uncle's disability and does he require any special accommodations in the home?
Wheel chair assist chairs
Does your uncle have a wheelchair or does he need one?
Yes he is in. Wheel chair and cannot show himself or change himself
What is your uncle's plan for long-term care? Does he plan to stay with you or move to a nursing home?
He could like to go to a nursing home
What is the name of the nursing home he is considering? In Missouri, Medicaid may cover nursing home costs if certain conditions are met.
We do not know i am just trying to see what doni need to do to make sure my house is not taken
What is the total amount of your personal assets, excluding the house and the home equity loan?
I own a house and car that is it i am a single mother with * daughters
What is the current market value of your car?
*,*
What is the current market value of your house, excluding the renovations?
I told you *.*
What is the total amount of your personal income?
I get food stamps i make * a month i will end * at *,* total income for the year
What is the total amount of your monthly expenses?
*
What is the interest rate on your home equity loan?
It flexuates
What is the current interest rate on your home equity loan?
Its fluctuate
What is the average interest rate on your home equity loan?
*.* %
What is the monthly payment for your home equity loan?
Why does this all matter?
Understanding your financial situation helps us provide accurate information on how to protect your house from Medicaid's asset recovery.
I am a single mom on welfare i am already in *,* worth of debt in cluding that house
What is the total amount of your debt excluding the house?

In Missouri, Medicaid can recover costs from the estate of deceased beneficiaries. However, there are exceptions for hardship, surviving spouses, minor or disabled children.
Around *,*
What is the nature of your other debts? This information can help us understand your overall financial situation better.
In collaboration
What is the nature of your uncle's disability and how does it affect his daily life?
He cannot donthings for him self he cannot change or wipe his own butt he has to have help for every task in life
What is the nature of your uncle's disability and how does it affect his daily life?
He cannot walk
What is the nature of your uncle's disability that prevents him from walking?
Obese
What is your uncle's current weight and height? Obesity can be considered a disability if it significantly limits one's ability to perform basic life activities.
Thank you i guess i just need to get a lawyer
I understand your concern. You may want to consult with an elder law attorney. They can provide guidance on Medicaid rules and asset protection strategies.