Mother is on Medicaid and wants to sell her home and buy another home to live in. Can she do this without getting kicked out of Medicaid? - AgingCare.com

Mother is on Medicaid and wants to sell her home and buy another home to live in. Can she do this without getting kicked out of Medicaid?

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You can use a difference in purchase price for upgrades to the "new" home (and its furnishings) too - new roof, heat pump, water heater or washer/dryer, installing ramps, a sun porch, landscaping, refinishing floors, adding a walk-in shower or bathroom remodel, lift chair, reclining bed, etc. - just make sure they are completed and paid for in the one month Medicaid time frame.
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Reply to TNtechie
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You might want to carefully look at the financial limits for community based Medicaid for her state. Selling the house could produce $$ paid to her. Say the current home is $350k and the one to be bought is much much smaller, more modest and only 250k. The month of the Act of Sale that 100k difference is “income” to her and then months afterwards is her “asset”. It will be recorded to the penny at the courthouse. If property is being sold to family it has to be sold at FMV.

Medicaid is an “at need” program both medically and financially whether it’s LTC in a NH Medicaid or community based Medicaid.
If her finances change, she’s required to report it.

If the $$ gained from the sale is not too too huge - like maybe 50k/60k - if she times the act of sale like for few early days of the month and has a definitive plan on a spend down (like fully paid funeral& burial, costly specialized wheelchair or walker beyond what Medicaid would ever get, dental work, new glasses and hearing aids, pay off her old CC debt) she might be able to legitimately spend down all the proceeds of the sale within the month. But imo if she does this she has GOT to have a spend down planned, and planned to the penny so that all get paid & clear her banking within the month. So she totally starts the month within community Medicaid limits AND ends the month within Medicaid limits and her bank statement shows this.

Absolutely no gifting to others.

Property sales are recorded at the courthouse to the penny and that info dovetails into state records. There’s no hiding $ from property sales from prying eyes.
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markwags1 Jul 23, 2018
Thank you....you were of great help!
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I would think so. But house must remain in her name. Any difference between selling price and new purchase price, if less, must be saved for her care. No gifting.

She is not in a facility, though, I assume?
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markwags1 Jul 22, 2018
Thank you!
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