Financial expert advises aunt on buying house for niece without affecting disability benefits
Updated
Updated · MarketWatch · May 9
Financial expert advises aunt on buying house for niece without affecting disability benefits
7 articles · Updated · MarketWatch · May 9
The case involves a woman in her mid-50s on SSDI, Medicare or Medicaid, with $8,000 left on her mortgage, while her 75-year-old aunt wants to fund a more suitable home.
The advice says Medicare and SSDI generally would not be affected, but Medicaid or SSI could be jeopardized because countable assets are often capped at $2,000, depending on state rules.
Suggested options include paying providers directly, using a special-needs or Medicaid asset-protection trust, or arranging a life estate, while noting gift reporting above $19,000 and possible Medicaid estate recovery.
Could the state legally seize a home gifted to a disabled person after their death?
How can an aunt's gift of a home jeopardize her disabled niece's essential health benefits?