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~$9k

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The pre-paid funeral is a good idea. That wouldn't cover all of it, in my area, but it would be a start.
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There is not enough there to pay for establishing a trust. Ask Medicaid how it should be used. Her caseworker can help you.
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Igloo52

Thanks for your answer. The house is selling at FMV to a non-related 3d party. My though was to purchase a prepaid funeral plan for her with the proceeds to stay qualified, but I was not certain if being above the limit for a day or two during the month would disqualify her or not. I have not been able to find any reference as to how that would be measured. The other thought was to put the proceeds in a special needs trust, but that may be more work than it is worth.
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Wow - 9K, really just $ 9,000? Well don't spend any of it!
Now the bad news…..under Medicaid rules, mom will no longer qualify for Medicaid. The asset limit is usually 2K and she now will have 11K. She will have to do a spend down to get back to being 2K.
The good news is…... that you may be able to use some of the 11K to get things for mom that she could use. If she doesn't have a prepaid funeral & burial, she could get that and that alone will probably get her back to under 2K. The policy will need to be NCV - no cash value - to now be Medicaid compliant. FH will know how to do this. You could get her new hearing aids, eyeglasses, a special walker or wheelchair (something more specialized than that Medicaid pays for). Or she just could private pay 9K to the NH (maybe a month of care or maybe a month & 1/2 of care). If you can do whatever within the month of the receipt of the $, it may mean minimal paperwork for everybody too. So she starts the month poor and ends the month poor with no change in income.

There should be an address within her Medicaid application as to where to send a letter of any change in asset or income to your states program. The billing office at the NH should also have this info. You or whomever is her DPOA can send a short letter with the details on the sale and ask how to proceed. Personally I would fax it or send it certified mail so that you have a record of doing this.

? for you, did the house sell at FMV - fair market value? That is something that Medicaid will likely ask about or look into. If the house had a tax assessor value of $ 55,000 and it was "sold" to a nephew for $ 9,000.00 that will be a problem for you all with Medicaid. So review the sale details.
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Talk to your Medicaid liaison. One thing is sure. They'll get it somehow.
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