The usual rule is that you don’t have to do anything as long as you don’t sell the house during your mother-in-law’s life, and making any transfers now could make her ineligible for Medicaid benefits for up to five years. However, depending on the language on the deed, your state Medicaid agency may have a claim against the house after your mother-in-law passes away. I strongly recommend that you consult with a local elder law attorney to review the deed, explain how this works in your state, discuss your plans, and take any planning steps if necessary.
To find an elder law attorney near you, click here.
For more on Medicaid's treatment of the home, click here.