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Mother is in assisted living and receives aid and attendance from the VA. We are wondering if renting her home would change how the VA categorizes it. It is currently an exempt asset, but would the VA view it as income property if we rent it? I realize that we would need to show the new income, but we don't want to risk losing the exempt status of the home.


Mother's savings account is draining quickly so if we can't come up with additional income she will need more help than what she is getting currently from the VA. We have a disabled brother who may need to live in her house some day, so we are trying not to sell it.


I have looked on the VA website and have not been able to find an answer to this question. The VA representative I spoke to locally said renting it would only change her income. He seemed unsure when I asked him about risking the exempt status of the home.


I would greatly appreciate guidance on this issue. Has anyone done this? How did it work for you?

Do you think Mom will need Medicaid in the near future? The house will not be counted as part of her assets but renting it out will effect her income. Not sure how Medicaid handles that. If it will penalize her or the rent can be used towards her care? Then its your disabled brother. Does he need to be living in the house when Mom passes? I just filled out recovery info and this is what it says:

"If a family member of deceased Medicaid client has, prior to clients death, continuously resided in a home owned by the client at the time of clients death, and that home was the clients primary residence, and was, and remains, the family members primary residence, the Division may record a lien against the property, but will not enforce the lien until the property is voluntary sold, or resident family member dies or vacates the property."

Its also asked for proof of disability if you check the box there is a disabled adult. So this is something I would look into. The paragraph I quoted doesn't say disabled child. There is another paragraph that reads:

"The State will not seek recovery of surviving spouse, child under 21 or blind and totally diasabled, payment will be postponed until child is 21, or spouse or disabled childs death."
Now, this is in NJ but think its something you may want to look into for the future.

I think the VA rep is probably correct. Its the added income that maybe a problem. You need to ask how much in assets is Mom allowed to continue to receive A&A. If Mom ever needs Medicaid to pay for her care, A&A will drop off. You cannot receive both.
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tossit926 Mar 17, 2019
Thanks for responding. There are so many angles to consider when making these decisions. It's overwhelming.

I assume that mother will need Medicaid someday depending on how much I can get for rent and how long that lasts. I'm trying to put off Medicaid as long as I can.
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