Can creditors or government take my moms home?


A few years ago my mother was diagnosed with dementia. She didn’t want to leave her home so me, my wife and two kids moved into her home. Now she has been diagnosed with Alzheimer’s and is clearly getting worse. If we reach a point where we cannot take care of her and she needs a memory care center or visiting nurses etc… can those expenses lead to the state taking her home? The home is paid off and her only income is social security and a small pension left over from my father who dies 20 years ago.. She does have very good medical insurance with Aetna but it doesn’t cover assisted living. We’ve been paying most her bills.
My sister, myself and my mom are listed on the deed with her as joint tenancy owners of the house.
I have POA, both medical and financial.
Is her home protected since my name is on the deed and we’ve been taking care of her?

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Posted by Anonymous
Asked on November 23, 2020 9:34 am
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If your mother needs skilled nursing level care and requires Medicaid (not Medicare) to pay for those services, then the state of Colorado can impose (and is required to) a Medicaid recovery lien on her assets, which will be paid through her probate estate. Depending on how the title is held, will determine the amount that can be recovered. I don’t have enough information to be more specific.

Also, depending on when you and your sister were added to her house, she may be disqualified from Medicaid for a period of time. The duration of the Medicaid disqualification depends on the value of the house and her other assets. The disqualification period does not begin to run until she is otherwise qualified for Medicaid, so without more information I can’t tell you whether she will be disqualified and for how long. In this case, because you moved into her house with her and depending on how long you have been on title and her care needs when you moved in, the house value may be exempt at least to your potion of the house. Again, I need more information.

Finally, it is worth pointing out that any funds that she transferred to you have a high probability of being a gift, even if you were assisting her with her medical and non-medical needs. This is because everything that you do is deemed to be for love an affection, unless it is done pursuant to a valid personal services agreement.

I would highly recommend you speak with us to discuss your case. The further you go along without adequate legal advice increase the possibility for your mother to have Medicaid qualification issues. If this happens, you will have few options except to private pay for her care while she waiting out the penalty period, which could be months or years.

You can schedule a free case assessment online 24/7 by going to or calling us at 303-688-0944.

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Posted by Bill Henry (Questions: 1, Answers: 75)
Answered on November 23, 2020 9:52 am