My father had a massive stroke and is now in a nursing home and on Medicaid. My parents have one house and one vehicle. They have no other assets beyond furniture in their home. The house is worth about $100k and they owe $45k.
Unfortunately, the house is 20 miles away from Nursing home and not ground level. My mother is living there alone and uses a walker. The home is not ideal or convenient. Her health is declining with traveling back and forth.
We have found a home for her to rent close to us and my father. She can not afford the rent house and her house note. We have gotten two different opinions from lawyers and do not know which or if either is correct.
Lawyer 1: do not sell house bc Medicaid will take 1/2 of assessed value. Not half of proceeds (sale price-loan debt). So if the house is assessed for 110 but only sells for 90, mom would have to pay 55k even though she is only making approx 45k.
Lawyer 2: Since they are allowed to retain 126k in assets and she will likely only make 45k in sale, she is still under the 126k threshold, therefore Medicaid will not take anything.
Please help. We are so desperate to get her closer but none of us can afford to come up with large amount of money to pay Medicaid if that is the correct answer. Thank you!