If a parent is enrolled, or will be applying for medical assistance, a family member can purchase the home for 85% of the county’s assessed value. If the family feels the assessed value is too high, then they can have the property appraised by a licensed appraiser, and the county will usually accept the lower valuation.
If a family member has lived with a parent for more than two years, and has provided care that resulted in the parent being able to remain the home rather than an assisted living facility or a nursing home for that period of time, then the property can be transferred to the child without any payment to the parent. This is an important exception to the asset transfer penalty.
There must be documentation from the parent’s physician verifying the care necessary. There must also be proof that the child provided the necessary care over the two year period of time, and the family member will need to prove that he or she lived in the home. Residency can be proved with a driver’s license, voter registration card, utility and credit card bills, or other means.