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He is 58, on SSI/Medicaid, lives alone up the mountains. Wants to sell house & move into town near hospitals/family. Catch-22: Unless he immediately reinvests his house proceeds into a replacement primary residence, he'll lose his SSI/Medicaid eligibility, but the rural house proceeds won't be enough to buy a replacement house in town. Would SSI allow him to buy "in-law quarters" on a family member's property in town? Does he have any options? Thanks.

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The "in-law quarters" may be a good idea. Each state is a bit different in their requirements, but I think this is something worth checking into. There are ready-made units and of course custom built. I hope this works out for you all.
Take care,
Carol
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