It depends on whether your father is receiving Medicaid coverage, or you plan for him to do so within the next five years. Such a transfer may cause him to be ineligible for Medicaid for up to five years following the transfer. There are some exceptions to this rule. For instance, if you’ve been living in the house and caring for your father for at least two years, he may qualify for the “caretaker child” exception. Another idea: If you are living in the house, could you pay him rent? In that case, perhaps the house could be insured as rental property.
Harry S. Margolis practices elder law, estate, and special needs planning in Boston and Wellesley, Massachusetts. He is the founder of ElderLawAnswers.com and answers consumer questions about estate planning issues here and at AskHarry.info.