Fear of Losing Home to Medi-Cal Contributed to Elder Abuse Case

A California daughter and granddaughter's fear of losing their home to Medi-Cal may have contributed to a severe case of elder abuse. If the pair had consulted with an elder law attorney, they might have figured out a way to get their mother the care she needed and also protect their house.

Amanda Havens was sentenced to 17 years in prison for elder abuse after her grandmother, Dorothy Havens, was found neglected, with bedsores and open wounds, in the home they shared. The grandmother died the day after being discovered by authorities. Amanda's mother, Kathryn Havens, who also lived with Dorothy, is awaiting trial for second-degree murder. According to an article in the Record Searchlight, a local publication, Amanda and Kathryn knew Dorothy needed full-time care, but they did not apply for Medi-Calon her behalf due to a fear that Medi-Cal would "take" the house.

It is a common misconception that the state will immediately take a Medi-Cal recipient's home. Nursing home residents do not automatically have to sell their homes in order to qualify for Medi-Cal. In some states, the home will not be considered a countable asset for Medi-Cal eligibility purposes as long as the nursing home resident intends to return home; in other states, the nursing home resident must prove a likelihood of returning home. The state may place a lien on the home, which means that if the home is sold, the Medi-Cal recipient would have to pay back the state for the amount of the lien.

After a Medi-Cal recipient dies, the state may attempt to recover Medi-Cal payments from the recipient's estate, which means the house would likely need to be sold. But there are things Medi-Cal recipients and their families can do to protect the home.

A Medi-Calapplicant can transfer the house to the following individuals and still be eligible for Medi-Cal:

The applicant's spouse

A child who is under age 21 or who is blind or disabled

Into a trust for the sole benefit of a disabled individual under age 65 (even if the trust is for the benefit of the Medi-Calapplicant, under certain circumstances)

A sibling who has lived in the home during the year preceding the applicant's institutionalization and who already holds an equity interest in the home

A "caretaker child," who is defined as a child of the applicant who lived in the house for at least two years prior to the applicant's institutionalization and who during that period provided care that allowed the applicant to avoid a nursing home stay.

In addition, with a little advance planning, there are other ways to protect a house. A life estate can let a Medi-Calapplicant continue to live in the home, but allows the property to pass outside of probate to the applicant's beneficiaries. Certain trusts can also protect a house from estate recovery.

The moral is: Don't let a fear of Medi-Cal prevent you from getting your loved one the care they need. While the thought of losing a home is scary, there are things you can do to protect the house. To find out the best solution for you, consult with your attorney.