I sold mom's house for below fair market value with a court order, will Medicaid still penalize

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Mom has Alzheimers and has been in NH for almost 2 years, on KY Medicaid. On the advice of my attorney I sold her house quite a bit below fair market value due to a mold issue and a court order advising me to do so. Will KY Medicaid penalize her and stop her payments to NH? I'm in the process of getting the papers together to send to Medicaid but I'm scared there's going to be a problem. Should I be concerned or am I covered by the court order. (I am her guardian) Her house was in Indiana as is the court issuing the order to sell at a reduced amount. She doesn't know me or where she is. If they penalize her she won't be able to stay in the nursing home and I am not physically able to care for her in my home.

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If you have any photos of the mold @ the house, I'd include those too. But you should be fine just keep the originals on all documents and send the copies of all in an envelope mailed certified mail & with return registered receipt (the green post card) at the USPO. This will run under $ 10.00 and you get the green card back with a date stamp and a signature so you can know just who signed off on getting the documents @ Medicaid. Also should they say they never got it, you can fax them over a copy of the green card and have a feeling of total tranquility!!
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As long as the proceeds go to her care and you can produce the court order, you will be fine. Send a copy with the application.
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