NoTime - You need to find out if the AL spouse is still considered a "community spouse" by Medicaid rules in your state. If so, then community spouse is allowed to keep assets that enables them to live in the community; only the in a NH & on Medicaid spouse has to be the impoverished one.
For most states, the community spouse is allowed about $ 113K in assets, beyond that the rest has to be spent down on the NH spouse's care before Medicaid will kick back in. Also the community spouse can ask for MMNA - monthly maintenance needs allowance. I've never heard of an AL spouse getting MMNA but maybe they could and use it on their private pay for the AL? You know if the house was sold for a good bit of $, it would be best to see and elder law attorney to figure out best how to spend the money (funeral & burials prepaid, dental work, other health related expenses that Medicaid doesn't cover, etc) and update all their legal so that the AL spouse makes the best use of the house sale $ rather than it just going to pay for the spouse's NH; & ask is they can get MMNA too.
Before you sell, check to see if there is a MERP lien on the property. If there is a lien, it will delay the closing. If the property is titled for a 50-50 ownership, half the proceeds go to Medicaid. If the property is titled "Joint Tenant" then each owns the entire property and Medicaid may go after the entire proceeds. Have a long chat with an attorney before you sell.
For most states, the community spouse is allowed about $ 113K in assets, beyond that the rest has to be spent down on the NH spouse's care before Medicaid will kick back in. Also the community spouse can ask for MMNA - monthly maintenance needs allowance. I've never heard of an AL spouse getting MMNA but maybe they could and use it on their private pay for the AL? You know if the house was sold for a good bit of $, it would be best to see and elder law attorney to figure out best how to spend the money (funeral & burials prepaid, dental work, other health related expenses that Medicaid doesn't cover, etc) and update all their legal so that the AL spouse makes the best use of the house sale $ rather than it just going to pay for the spouse's NH; & ask is they can get MMNA too.