Protecting Investment Properties -- HELP!

I have been having discussions with an elderly friend (not Internet saavy, so I’m posting the question) who seems to be in a precarious position. If their loved one enters a long-term care facility, and they apply for Medicaid, they may lose their investment properties.

Due to Medicaid laws, they can keep a sum of cash, one vehicle and their primary residence. However, they could lose their investment properties because they are considered assets above and beyond the state minimum for Medicaid. Unless the property titles have been out of their name for at least 5 - 7 years, it is considered to be an asset to be turned over to the state. Obviously, they can sell their property, but they defeat the purpose of holding the property, cash flow and sentimental value of their life-long investment properties.

What can they do to protect their property without waiting the 5+ year period? What possible means are their to protect the property?

Any suggestions or advice is greatly appreciated and welcome. Thank you.


nothing. at least that’s my understanding.

If you sell or transfer property within the previous 60 months, then that property will be figured into the formula for what the state pays. Note that they cannot sieze those assets (which may now be owned by some other 3rd party), they only figure the value into the calculation.

So, she can transfer or sell the property to maintain the monthly cashflow in the family, but it will have an effect on the numbers.

When our mother began to exhibit early alzheimer’s symptoms, we had her deed her house to us years ago, on the assumption that someday (5 weeks ago, in fact) she would have to be put into some kind of facility.