Dad passed away this year. Mom (90) owns her condo outright. Daughter (58) lives with her (has lived with them for 5 years) and is now employed by mom as her full time paid caregiver (taxes SS, taxes etc). There are 5 siblings total. We are all in agreement with the ways things are running. We have a Lady Bird deed on the house and everything else is in a Living Trust. Mom has enough money to pay daughter for probably five years.

We are considering moving them to be closer to family across the state. So the QUESTION is this: Can mom sell the condo, put the money in the bank and use that to pay for a 2 bedroom apartment somewhere? This sounds like it should work UNLESS mom outlives her monies and ends up on Medicaid down the road. Being the money would be in the bank and not tied up in a homestead, would they make them spend this money down? Would they be better off repurchasing in the new location (problem may be finding a home as nice as the one they have currently which is valued at $120k. new location doesn't have anything as nice as hers for under $200k. )

Hope I explained this clearly with enough details. If not, just ask me. Thank you for your feedback. The information shared on AgingCare was invaluable to my sister and I in the past few years as we dealt with dad's dementia, 24/7 care facility and hospice.

Michigan is not like other states with spendown. Your mother can spend the money on whatever she wants: rent, shopping or the casino. She just cannot gift money to a person.

When I went through it, they asked us for 3 months of statements. Granted Medicaid without a hardship waiver and 100s of thousands was spent at Soaring Eagle.
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Reply to tacy022

Cash money from home sale will not be protected and will be subject to spend down before mom is eligible for Medicaid. Money will not pass outside probate in trust because she can’t gift a trust with anyone besides Medicaid as the beneficiary if she goes on Medicaid. Talk to elder attorney!
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Reply to Guestshopadmin

Yes she can do that. It won’t affect Medicaid legibility. It’s a legit way to spend down the money from the sale of her house.
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Reply to worriedinCali

I don't know any of the legal workings of any of this, but does she WANT to make this move, and does the Sister want to make the move? You are currently in the same State. Do they both want to be closer to you? It seems like a lot of trouble and problems, and a place not as nice.
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Reply to AlvaDeer

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