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V
vanderer Asked October 2013

We put money into moms house after she went into AL. For medicaid spend down can we get reimbursed when house is sold?

igloo572 Oct 2013
This is sticky as the sale will be recorded and known by the state as to how much the property was sold for. Medicaid fully expects all the $ less fees from the sale - less Realtor commission, title search - to be fully used to pay for her care or in other spend down for her. Your getting part of the proceeds looks life "gifting" which will likely cause a transfer penalty inquiry by Medicaid.

As Jinx said, if you do this you better have very detailed documentation to prove it was not gifting. A pre-existing agreement with mom would also be good. The big problem is that since she owns the property, the money will be paid to her and have to go into her existing bank account and then from that she would pay you. For items you paid for and have the cancelled checks for or CC statements on, she can write the exact amount for that and note it on the check. But this is going to be some kinda cumbersome.......I'd suggest going to see an elder care attorney before the act of sale happens to see what they suggest would be the best approach for how Medicaid views all this in your state.

Jinx4740 Oct 2013
I don't know, but you would need to have plenty of documentation. If you had paper saying it was a loan to her, maybe......

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