My grandmother had a cd that was put up as a loan for my parents at a bank, she recently paid it in full with the cd. She may need to be ent...

Question

My grandmother had a cd that was put up as a loan for my parents at a bank, she recently paid it in full with the cd. She may need to be entering the nursing home soon, how will this affect my parents? Will the nursing home take their property to pay her bill at the nursing home?

Answer

Please understand that Medicaid issues are complex and this website here is no place to rely on for specific answers. In general though, if your grandmother used her property to pay off someone else's loan, she has made a gift to them in the amount of the payoff. While the nursing home could care less about this, if your grandmother applies for Medicaid, they will penalize her for this transfer. If you want specific answers, you should consult with an elder law attorney.

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