A first post and advice needed

What a resource. Staggering amount of information here.

I searches the database and came up empty for what I need to find out. Sounds like this place may be better than my attorney.

I want to protect my father’s house from the 60 month Medicaid lookback period. I have few options. I thought if I bought my father’s home at market value, set up a private loan with him to pay him directly, and then let him retain residence, it may save the house from eventual reimbursement should he need the care.

Is this a viable idea? Illegal? Unethical?


Unless or until the authorities that be were to potentially come after assets they are legally yours (Your fathers also) so until that time the legal right to sell or buy is perfectly legal and in this case keeping the family home intact is perfectly fine.

What is the value of this home? And what is owed on mortgages on the property? What state are you in?


My Mom sold me her house for a dollar. I in turn gave her a life estate in the property. She can live there for as long as she lives. No one can take that from her.

I agree with Gold River. However the only fly I see in the ointment is if like the IRS, the medicaid people have the right contest the sale saying that you did so to avoid the debt…which unfortunately you have posted here as the reason.


I think now knowing you paid $1 (One) dollar that I would have set up a full value purchase with amortized monthly payments over 30 years, then set up a trust (Actual Revocable or irrevocable Trust)  to purchase the home in and hold the deed (This is your trust with an outside trustee, not yourself but a trusted friend or relative), then the payment is offset by rental income by your parent.

So it looks like this:

$100,000 Purchase price
$536.82 Monthly Payment @ 5% for 360 months
$536.82 Rental Payment - Until Parents Move On

Effective net profit or loss = 0

The payment would have been paid to your parent and the rent would be paid to you, they offset each other but provide protection for the transaction.

Then set up a trust (Actual Revocable or irrevocable Trust) for your parent, if the no longer can live their and you then rent it to an outside party, you would then be paying the mortgage payment to a trust on behalf of your parent.

They could not be sued for the trust and you could be their trustee so any money in the trust could pay incidental costs on behalf of your parent without being able to be sued or seized for Medicaid payments.

This way the house sold for FMV and held in your trust sits until your parent (s) move on and it protects everyone’s interests.

Now obviously this is not to use to avoid debt owed today for any creditor including Medicaid, however you have the legal right to sell your home or assets at any time provided you don’t owe a debt secured by the home or that the home is currently promised as collateral to pay.