Medicaid And Rental Income
How Are Rental Income Producing Properties Handled?
How does Medicaid handle the ownership of rental properties? If you own property, and decide to rent it out, how does that affect your Medicare plan? A Gainesville elder law attorney can help you understand.
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“The other thing that Medicaid encourages and one of the things that we use quite frequently is something called ‘rental income producing property.’ Rental income producing property means you can take that $100,000 and purchase something. Let’s say you purchased a student apartment that is down at the University of Florida, and you purchase this apartment for $100,000, and it provides you with income. That income, while you’re living, must go to Medicaid because they’re providing a service to you while you’re in the nursing home. You’re getting this income. After you pay the expenses of that apartment, that income needs to go to Medicaid. Medicaid likes rental income producing property because what that means for them is that during the life of the person who they are paying for, they’re going to get this steady stream of income. What you can do with that property because you sometimes want to provide a benefit to your loved ones is that when you die you can do a deed so, on the front end when you come to see us, we’re going to do you an enhanced life estate deed. That deed is the deed that you have on that rental income producing property, and it means before you die, Medicaid gets all the income, but when you die, that property is going to be owned by your named beneficiaries, your remainder men on that deed. What this does to help everybody is it allows you to pass on an asset to your loved ones, and it also allows you to provide benefit to Medicaid, which would be income during your stay in the nursing home, and then when you die, you have something to give to your children. That’s one of the really great things about Medicaid planning; it really helps everybody.”