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Long-Term Care Homestead Resources

Long-Term Care Homestead Resources. How to Consider Homestead Property in Long Term Care Cases. Six-Month Rule. A Medicaid recipient is considered permanently institutionalized after 6 consecutive months in a Long Term Care (LTC) facility .

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Long-Term Care Homestead Resources

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  1. Long-Term Care Homestead Resources How to Consider Homestead Property in Long Term Care Cases

  2. Six-Month Rule • A Medicaid recipient is considered permanently institutionalized after 6consecutive months in a Long Term Care (LTC) facility. • The six-month count starts with the month of institutionalization, not Medicaid eligibility. • This means that the homestead property is no longer considered the individual’s residence, and is considered as non-home property.

  3. Things to Discuss With Your Client • Explain that the homestead property is considered a resource after six months of institutionalization. • Advise the applicant of all reasons that may allow this resource to be excluded. The next few slides will discuss these exclusions.

  4. What Are the Exclusions? • The individual states their intent to returnhome upon leaving LTC • A community spouse or other dependent family member resides in the home • The homestead property may be excluded for six months if there is a verified “effort to sell” it at fair market value The next few slides explain these in more detail.

  5. Individual Will Return Home • If the individual intends to return home, he/she must provide a statement estimating when they will return. • This must be signed by recipients able to declare intent. • If the recipient is unable to sign, the statement is signed by the Power of Attorney (POA). If there is no POA, the statement can be signed by a representative. • This statement must have an anticipated date the patient anticipates to return home • Review the matter at the next re-certification.

  6. Family Member Resides in the Home A dependent family member is any of the following who received more than ½ of their annual financial support from the LTC individual: • Child, stepchild or grandchild • Parent, stepparent or grandparent • Brother/sister, stepbrother/stepsister, half-brother/sister • Aunt, uncle, niece, nephew, cousin or in-law The dependent family member must have been living with the individual prior to admission to LTC.

  7. Effort to Sell • The PVA assessment or tax notice (without homestead exemption) can be used to verify fair market value. • This exclusion may be extended past the 6-month exclusion, but onlyif approved by DMS. • If refusalto sell the non-home property causes countable resources to exceed $2000, the case is discontinued due to excess resources.

  8. At 6-Month Spot Check At the 6-month spot check, obtain verification of effort to sell the property at fair market value. Verification can include: • Advertising in local media • Listing property with real estate agent • Placing a “For Sale” sign on the property

  9. At 6-Month Spot Check Extension past the 6-month exclusion must be approved by DMS. Verification for the extension request is sent to MSBB through your regional Program Specialist. Extension requests must include an explanation of “effort to sell” and reason for the extension request. (Why didn’t the property sell?)

  10. LTC Less Than 6 Months at Application • Spot-check the case for after 6th month of LTC • At 6 months, allow 10 days to return verification of sale, or effort to sell, the non-home property • If verification is not returned, discontinue the case for being over the resource limit • Upon receipt of verification of “effort to sell”, allow the recipient 6 months, and enter a spot check to send an RFI at the end of that period

  11. LTC of 6 Months or More Individuals in LTC 6 months or more at application must provide verification of sale or effort to sell the non-home property before the application is processed. • Allow 10 days to return verification of sale/effort to sell • For failure to return verification, deny the case for over the resource limit • If verification is provided, spot-check case for 6 months from approval to check status on sale of the property

  12. Sale of Property • Once the property is sold, consider the proceeds as a resource. • Use regular resource rules for consideration of the proceeds. • Compare current resources to the resource limit and process the case.

  13. Conclusion • Homestead property is considered non-home property after 6 months in LTC. • Homestead is excluded if they intend to return home, making an effort to sell, or if a spouse or dependant is residing in the home. • After 6 months of trying to sell, an extension can only be granted by DMS. • See Vol. IVA MS 1975 for more details.

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