Hello,
My father has recently been approved for Medicaid and owns a small condo in Chicago. He doesn't owe much on it but I would like to purchase it from him. I'm having a difficult time finding information on if a relative can purchase a property from someone on Medicaid, and if so, how to determine the purchase price. Spoke to a couple of attorneys that said if they didn't prepare the application docs, they can't help. The nursing home he's in helped us apply. Any insight would be very helpful!
First, the profits from the sale will be noted by Medicaid, thus Dad will be off Medicaid until those profit are used up as "self-pay" at the nursing home. Only Dad can use that money and it has to be for his care.
Second, Medicaid would require that the condo be sold at fair market price. No discounts. It doesn't matter who is purchasing the unit. Your Dad will probably need to hire a licensed Appraiser to determine what is the value of the condo. That price will be the guide.
Did you talk with an "Elder Law Attorney"? They are quite familiar with the ins and outs of Medicaid, and could advise you on what steps to take.
Oh, be sure to keep the Condo HOA fees up-to-date. Since Dad doesn't have liquid cash due to Medicaid, someone in the family will need to pay. If the Condo HOA fees are not paid, the Association can place a lien on the condo.
You can not just take over payments. As FF has stated, FMV needs to be paid, it is an asset that belongs to Medicaid (taxpayers) for their financial aid to your dad, so he can sell and self pay until he is impoverished or you can keep it (paying all HOA dues, property taxes and maintenance) until he passes then Medicaid will sell and take the profit from sale. This is only fair as taxpayers pay for Medicaid and all the services and aid they offer.