By: Jessica LoPiccolo
Here in Ohio, we see quite a few clients who have farms that have been in their family for many, many generations. Most of the time, the family wants to continue to pass the farm down to their children, grandchildren and on down the line. But many families don't realize that there is a very serious threat to that dream. For instance, what happens if Grandma dies and then Grandpa gets sick and has to go into a nursing home? Once he has spent through his hard-earned savings, Grandpa will have to go on Medicaid in order to continue to pay the nursing home bill. The farm can be in his name for 13 months after being admitted to the nursing home.
But if he does not return home and the 13 months pass, the farm will have to be listed for sale (for at least 90% of the auditor's value or the full appraised value) in order for him to stay eligible for Medicaid. If the farm does not sell during Grandpa's lifetime, when he dies, the State of Ohio will place a lien on the property for the services provided through Medicaid (which can be a large amount as the average monthly cost for a nursing home in the State of Ohio currently is $6,114). Even though the farm may be “transferred on death” to Grandpa's children, the lien will follow the farm and will continue to incur interest until it is satisfied.
There are ways to avoid losing the family farm to Medicaid Estate Recovery. Please call Cooper, Adel and Associates to come in for a free one hour consultation to learn more.