Caring for an Elderly Parent in Their Home

Most people hope to remain living independently as long as possible. However, as life expectancies increase, a longer lifespan raises the likelihood of needing elder care. The potential need for nursing home care poses the threat of wiping out resources you had hoped to pass on to your family members.

With Medicaid planning, older adults can get nursing home care or have family caregivers provide necessary care so they can stay in their own home. An elder law attorney can help you come up with a care plan to get care benefits and maintain your quality of life. Contact a local elder law attorney for legal advice about your care needs so you can stay in your own home.

Home Care Services and Qualifying for Medicaid

Medicaid is a federally funded healthcare program that pays long-term care facility costs for older adults and people with disabilities. Medicaid nursing facility benefits are available to those who qualify based on limited income and assets and who can no longer care for themselves.

In New Jersey, the income limit for long-term/nursing home care is $2,982 per month. The Medicaid asset limit is $2,000 for a single applicant ($3,000 for married applicants).

However, there are some exemptions that do not count toward your total assets. Common exceptions include home equity (up to a certain amount), your vehicle, and some personal property. However, if your spouse or dependent still lives in the home, your residence is exempt from countable assets.

To complicate matters, there’s a five-year look-back period from the date you apply for benefits. During this period, any gifts you might have made will count as available assets. This will identify any asset transfers. If you transfer your $200,000 house to your child a year before you apply for Medicaid, you pay $200,000 in care costs before you hit Medicaid eligibility.

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The Medicaid Caregiver Child Exemption

The Caregiver Child Exemption is an important, but limited, exception to this harsh result. This rule allows you to give your house to your adult child without triggering any gift penalties. To qualify, your child must have lived in the home and provided in-home care to you for a two-year period, without which you would have required care in an assisted living facility.

“It has to be care of a kind that keeps you out of a nursing home,” advises Bridgewater elder law attorney Lawrence Friedman of the level of care. “If all you’re doing is shopping and doing laundry, that doesn’t cut it.”

The rule applies exclusively to biological or adopted children. The exemption does not extend to grandchildren, nieces or nephews, stepchildren, foster children, or in-laws. It only applies to your primary residence. You cannot use the exemption to transfer a vacation home.

Qualifying for the Caregiver Child Exemption

To help ensure you qualify for this exemption, keep records of the care provided. Care can include monitoring medications, providing meals, assisting with bathing and dressing, and helping with other activities of daily living to keep your elderly parent safe and allow them to remain at home.

Make sure to document any events that might have been dangerous had your parent lived alone. Also, document the kinds of additional back-up care used when you weren’t available. The goal is to show that without this provided senior care, they would have had to be in a care facility. In addition, keep records showing that you lived in the home, such as a driver’s license or bills indicating your residence address.

“The big issue is whether the caregiver child can hire a personal care attendant (PCA) or has to do the care themselves,” adds Friedman. “The Medicaid offices are taking the position that the caregiver child can’t work and has to provide the care, as opposed to paying someone for it. The law doesn’t say that, but it’s still an open question. We’ll have to see what the courts say.”

Get Experienced Legal Help

An attorney can help you through the Medicaid application process and provide you and your loved ones with peace of mind for your well-being. If you have questions about the Caregiver Child Exemption for your aging parent, talk to a local New Jersey elder law attorney.