Moving from a house that you own into a nursing home facility is one of the more challenging life changes that people encounter as they advance in age. In addition to the emotional hardship that comes with making such a transition, there are also financial difficulties.
Living in a nursing home can be expensive. The average price of a private room in a nursing home is currently more than $100,000 a year. Because of this, many people need the assistance of government programs such as Medicaid to pay the bills.
In such a situation, the state may attempt to obtain reimbursement for those costs. For many people, the only available source for this kind of payment is the equity in a home that they own. Your particular circumstances will determine whether this means you will lose your home.
If You Are Single or Widowed
In Florida, if you are unmarried or your spouse has passed, you may be able to keep your home and still qualify for assistance. Under Florida law, as long as your home is your “homestead” and you have resided in your homestead for more than a year, it is considered an “exempt” asset, both during your lifetime, and even after death (if you are leaving the homestead to blood relatives). However, because your income will be going to the nursing home, someone else (for instance, your children) may have to pay for the upkeep and maintenance. Also, you may be able to rent your homestead, but then you have created additional income that may need to be paid over to the nursing home (that is beyond the scope of this article). Also, the creditor protection after your death is not available if you turn your homestead into an income-producing property (there are ways around this, but again, that is beyond the scope of this article).
You may be eligible to transfer the home to someone else without incurring a penalty, as long as they fall into one of the following categories:
- They are your child, and they are under the age of 21.
- They are your child, and they are blind or disabled.
- They are your child and have been your “caretaker,” i.e., they have lived in your home with you for the last two years and have provided you with care as a way of keeping you from being in a nursing home.
- They are your sibling, and they have lived in your home for the last year, and they already hold an equity interest in your home.
If You Are Married
If you outlive your spouse, you may still be able to keep the home, again, assuming that you have children who can maintain the expenses on the homestead. The exceptions noted above apply in this situation as well.
Speak to an Elder Law Attorney
If you need to move into a nursing home but are hoping to keep your house in the family, speak to an attorney who has experience practicing elder law. We can help you to understand the specific requirements of your situation and will guide you through all the steps you need to take. We can also help you find your best options for maintaining possession of the place you have put so many years of work and love into. To get started, simply call our Tampa elder law firm at (813) 438-8503 and mention this article to schedule a complimentary consultation.