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kylekrason Asked June 2018

My 77 year old grandma is looking to sell her $150k house. It's paid off. Will she still qualify for Medicaid?

My 77 year old grandma is looking to sell her $150k house. It's paid off. Will she still qualify for Medicaid after the sale? I saw an article that said she can't have more than $2,000 in cash to qualify.

kylekrason Jun 2018
Much appreciated everyone.

Guestshopadmin Jun 2018
She will lose Medicaid if she gifts the proceeds. Many people living with a boyfriend end up in nursing home when care needs get too great. And Medicaid looks back 5 years to see if you gifted away money you can use for care. Is family who receives and spends money going to house her? Better Check to see if Medicaid already expects to be repaid from proceeds of house if sold. The asset of house is only exempt until she tries to sell it.

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kylekrason Jun 2018
She wants to sell the house and give the proceeds to her children so that she can see them spend it while she is still alive.

So if she sells her house and gives them the proceeds now, instead of letting the court handle when she dies, she loses medicaid?

She lives in Nevada, will be moving in with a long-time boyfriend, and does not plan to move to a nursing home.

shad250 Jun 2018
It's business

gladimhere Jun 2018
And an FYI, she needs to sell the house for fair market value or Medicaid will penalize her.

Guestshopadmin Jun 2018
By the way gifting the money to family members is a quick way to not keep Medicaid.

BarbBrooklyn Jun 2018
The answer is "It depends".

Community Medicaid or Nursing homes Medicaid?

What State?

Is there a spouse?

Countrymouse Jun 2018
Where is your grandmother planning to live once she has sold her house, Kyle?

If she is moving into a facility, the fees will rip through that $150K so fast it'll make your head swim; and then once she has gone below the threshold she will be able to apply for Medicaid. If this is the plan, it would be sensible to check in advance that the facility is set up for Medicaid-funded residents.

If she is moving in with a family member, then the finances still want careful planning. No matter how loving and supportive the family, living still costs money and so will her future care.

Or, is she buying another house or apartment? I don't know the answer to this: if Grandma spends her $150K on a new residence, and thus has no capital left to speak of and meets the income criteria, will she then be able to apply for Medicaid? - other forum members will know.

jeannegibbs Jun 2018
She can qualify while she owns the house, but not with the cash from the sale of the house. After the $150,000 is gone and she is down to $2,000 (which doesn't take as long as you might expect, given the costs of care) then she may be eligible again.

anonymous439773 Jun 2018
Money from the sale of her house is an asset. Her assets should be used to pay for her care and her needs not to leave inheritances or to give gifts,

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