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Posted Nov 7th, 2011
NJAC 10:71-4.10(d)(4) contains a Medicaid exempt transfer, the "care giver" child exception for real
estate. Can property be subjected to a lien?

Additional Details:
Jurisdiction- New Jersey I am trying to figure out what happens if the NJ Div. of Med. Assistance
and Health Services denies the validity of the exempt transfer. Can a lien be placed against the
property when the caretaking son/daughter''s name is solely on the deed to the property? What''s
the effect? Is ownership in the real estate by the caretaking child in any other way jeopardized?
Can NJ DMAHS pursue estate recovery against the estate of the patient who entered a nursing home?
What specific assets of the decedent could the NJ DMAHS seek to attach- bank accounts? IRA
accounts? stock or mutual fund accounts? life insurance proceeds? etc.? TOD accounts
included? In regard to the period of ineligibility imposed by the NJ DMAHS, if the home is valued
at $200,000, assume the real estate transferred occurs in 11/11 and that the patient enters the
nursing home in 6/12. If the real estate transfer is rejected as an exemption, what is the period
of Medicaid ineligibility?
Legal Topic Area: Medicare and Medicaid in NJ

The period of ineligibility will be determined by the fair market value of the asset, divided by the medicaid ineligibility factor for new Jersey. I believe that number is $7282 - so take the fair market value and divide by $7282 to come up with the number of months of ineligibility. I do not believe Medicaid will put a lien on the property that is in the name of the caretaker child, because they will not be providing services during the period of ineligibility and therefore there will be no costs incurred. New Jersey is an estate recovery state, and if there is an estate they will place a lien against the estate.


Answered on Nov 8th, 2011 at 12:22pm