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She is raising their granddaughter and daughter and needs care for her much older spouse. No savings or other resources.

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DiLizzy, I assume this situation is about the spouse of "she", and that the older spouse would need to be in a skilled nursing facility before too long. If the older spouse is going onto Medicaid to help pay for nursing home care, Medicaid will request that reimbursement happen some time later down the road if there is a house involved.

Have "she" contact Medicaid to see how long can she remain in the house once the older spouse passes. Depending on how the State has their Medicaid set up, would be her guide. Medicaid will not leave the remaining spouse destitute.
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A spouse who remains in the community does not have to sell the house or the car to have their ill spouse qualify for Medicaid. In fact, she may even get to keep some of the income of the spouse who goes into the nursing home if her own income is very low. It is complicated. The nursing home should have someone who can help or your local Office on Aging might be able to give you some guidance.
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Even after the one spouse passes, the one left will not need to leave the home. Medicaid will put a lean on the house which will be satisfied once the house is sold.
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