My friend's mom died. My friend is on Medicaid and in a nursing home. Will the state take the house that she has inherited and the small Minnesota life insurance policy?
Insurance policy check, yes. The home no, but who is going to upkeep it. Her money can only be used for her care. So, the house will need to be sold for her care. Depending on the size of her insurance, Medicaid will stop and she will have to go thru spenddown then reapply. If the house sells, then same thing, will have to go thru spenddown. Her Mom did her no favors leaving her both. Just causes problems.
Curious, but why is friend in a NH? I would assume its permanent? If under the age of 65, the money and proceeds of the house maybe able to be put in a Special Needs Trust. This way there is no interruption in Medicaid. Who has POA or guardianship?