Applying for Medicaid, have home in need of fix up. After house sells can family be reimbursed from proceeds?

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Family to contribute to fixing up.

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About getting an appraisal like FF suggested, if it's looking like the house will sell for significantly below the tax assessor value this could be a red-flag for medicaid. If so, you really REALLY need to have an appraisal done that legally establishes just why the how sold legitimately for under tax assessor value.

If you are selling the house FSBO or selling to family, selling below tax assessor value will be a problem and could generate a transfer penalty inquiry by medicaid unless you have the appraisal done and the price paid is at or close to the appraisal value.

Sometime to get an accurate value you first get an inspection done and then that report goes to the appraiser who does their evaluation. If there are significant foundation issues, you may need to get a residential structural engineers report as well. I did all 3 to get value for my mom's house for probate. The reports will need to be done by licensed and certified state registered professionals, usually they have a seal on the report. Realtor comps probably will not work as they aren't considered "legal" & specific to the property.
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Pam had a good idea of selling the house "as is". Get a licensed Appraiser to give you a value on the house and list the house close to that value. That is what I did with my Dad's house. His house was in basically good shape, it was just he and Mom never felt the need to remodel the bathrooms nor the kitchen as it worked just fine for them. The roof was fairly new, so that was good. We got a very reasonable price. The new owner remodels houses while living in them.
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What Pam has written is pretty important, please re-read her post.

Its probably better to sell the home BEFORE ever applying for Medicaid for the reasons she mentioned. Realize that by doing this it allows you to determine the spend-down with the $ from the house sale. By doing this BEFORE Medicaid, you could spend on getting dental work done, buy a preneed funeral policy, get duplicate pair of eyeglasses and hearing aids, extra clothing that work better for a NH environment and also private pay for your NH stay. If you sell the home after you are already on NH Medicaid, the $ is going to need to private pay for the NH first & foremost and the state could require that you repay whatever $$$ the state Medicaid program has paid to date for your care from the proceeds of the house.

Spending time & $ on a house that will involve Medicaid - other than the required like taxes, insurance, critical maintenance - is probably not the best use of $ if you or your family have limited funds.
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Reinbursement to family for "loans" will be pretty sticky to deal with for Medicaid, as any payments from you to family will look like "gifting". You would need to have some sort of very clear memo of understanding or even a promissory note btw you and every family member as to the loan and structure of repayment and have the document notarized. This document along with all the supporting receipts for work, materials, etc would need to be included in the Medicaid application. Now how it get reviewed and determined if OK is going to be totally dependent on your caseworker and more than likely will go to a level above them to evaluate.

If Medicaid decides that it's "gifting", there will be transfer penalty placed based on the amount of $ you paid family. You will have to get an elder law attorney to deal with the transfer penalty appeal.

If you have family who have a legit & registered construction/renovation business and they do the work on the property, they could place a workman's lien on the house which would have to be repaid in order for the house to sell; and this gets repaid at act of sale so the lien is "lifted".

Realize that when you sell your home, the amount it sells for is a recorded amount (& to the penny) and all that $ will be considered an asset and will make you ineligible for Medicaid till you have spent-down the $ on yourself and your care till you are basically impoverished (2K in non-exempt assets and within whatever your state has as it's income maximum & most are $ 2,100 a mo).
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Selling the house: very difficult with a Medicaid lien on the property. The seller's attorney has to negotiate with Medicaid to clear the title.. Then when the proceeds come in, Medicaid stops because the patient has money to spend down. Why not sell it as is ?
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When you write "mcd" do you mean Medicaid? When you apply to Medicaid they will use a 5-year look back on finances. If they see you own a house, then Medicaid can place a lien on said house. Thus when the house is sold Medicaid gets paid first, and if there is any equity left over, then whomever is named in the Will will get what is left.
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