Income Producing Real Estate for Medicaid

Purchasing an interest in income-producing real estate is one of the best planning opportunities available to establish immediate Medicaid eligibility. Elder Law Associates PA works with our clients to determine the amount needed to invest in income-producing real estate based on Medicaid asset limits and other rules regarding spenddown of assets.

We work with another company, Elder Planning Income Concepts, LLC (EPIC), to select the appropriate property or properties from a portfolio of real estate investments based upon the amount available for investment. We also are able to advise our clients of the exact net monthly rental income they can expect to receive.

Elder Law Associates PA reviews and counsels our clients regarding all legal documents necessary to effectuate this transaction (i.e., Contract, Land Trust, Deed, Lease and Purchase Agreement).

In this arrangement, our clients receive a deed showing their ownership interest in the property, which is then rented to EPIC and subleased to tenants, who pay the rental income. By utilizing this approach, our clients can effectively and legally convert assets into an income stream.

Within six months of a client’s death, EPIC repurchases the client’s interest in the property for a price agreed upon in advance. The amount of guaranteed repurchase will vary by case, but will be fixed in the original contract. EPIC will pay the guaranteed amount, and the client’s trustee will deed the property back to EPIC. The trustee then distributes the sales proceeds to the beneficiaries of the trust and there is no estate recovery by Medicaid.