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I AM 68 YEARS OF AGE, DIVORCED AFTER 43 YEARS OF MARRIAGE, TOOK A $200,000 LOSS ON OUR LAST HOME, MOVED INTO A SMALLER DWELLING AND TRYING TO MEET ENDS MEET IN MY LOW SOCIAL SECURITY INCOME. I AM NOW ON MEDICAID, AND DON'T WANT TO JEPROIDIZE ANY OF IT.

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Your home will continue to be an exempt asset for Medicaid eligibility purposes. Each payment to you from the reverse mortgage is not considered "income" under the Medicaid rules, but it will count as an asset to the extent any of it is not spent during the month of receipt. Merely having a line of credit against the house (i.e., the bank says you can borrow up to $X against your equity in the house) is not a countable asset. I hope that helps!
I have a section in my book on reverse mortgages, when they are useful and when not, as well as a great alternative, the "private reverse mortgage."
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Please consult your local Medicaid people about this. So much will depend on your personal situation and the possibility that the state may have interest in your property.
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A reverse mortgage will not be counted as eligibility or resources income as long as it is structured as an equity line of credit. You should not choose to receive a lump sum or structured payments monthly as this will interfere with Medicaid.
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