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We currently live with my wife’s grandmother in PA. Her primary caregiver (so- in-law, my father-in-law) had a stroke. He will no longer be able to take care of her. We have two children and can’t take care of both my FIL and wife’s grandmother. We need to have her placed into a nursing home (long term care).
We would like to keep the home that we are currently living in. It is in the grandmother’s name, but we all split the mortgage. I was thinking of doing a mortgage assumption to take over the mortgage myself. I’m not sure how to protect the home from being taken, and I need to protect it because my father-in-law will not have a place to live.
I’m wondering if the home is an excluded asset, as it is under the equity limit, and we currently live in the home with my father-in-law who was her primary care giver.
If anyone could give me some insight that would be greatly appreciated.

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JordanSpack, with regard to Medicaid, it is my understanding that Medicaid would place a lien on the house, and years down the line once your father-in-law moves elsewhere or passes on, then and only then would Medicaid request payment on the lien. Thus, your father-in-law would still have a place to live if he stays in the house.

If you wish to purchase the house, you would need to buy it at current market value.

You may want to double check that with your State Medicaid office. And please note that Medicaid is paid by us taxpayers.
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Medicaid won’t kick you out. What it will do is put a lien on the property that must be satisfied before title changes hands. I don’t know what if any interest is charged.
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You should probably consult with an estate planner to figure out if it is advantageous to buy the house now at FMV (waiting for the buyer's market to improve) or to have her keep the house until she passes, then inherit (?) it and satisfy the lien at that point Lots of unknowns and variables that you should discuss with an actual knowledgeable professional.
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You need to see an attorney in your area for legal advice on all this; it's a complicated situation. I hope Igloo is around as she has excellent advice on these situations, but don't take the word of a forum. You cannot afford to go wrong on this as the consequences of not understanding the best way to go are dire and in the 100s of 1,000s of dollars. You may already have risked a whole lot of money by paying a mortgage on a home the title of which is not in your name. Guess you can chalk that up to rental and move on from it, but it may be lost money. Best of luck.
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