Receiving money from my home equity. I am 59 years old and receiving Medicaid through the state of California. I am also caring for my 86-year-old mother on a full-time basis. I needed to draw a large amount of cash out from a shared appreciation on my home equity. If I draw a significant amount of cash out how will that affect my Medicaid and what can I do to stay qualified and not lose Medicaid? Can I give the money to my mom being she’s 86-year-old and exempt the cash for her care. She lives with me.

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I agree with Igloo, wait till after the first of the year when ur able to get info from Medicaid.

My nephew is on "workability" with Medicaid. He is allowed money in the bank and has a cap for working.

You need to talk to ur caseworker. It will probably will depend on the income ur bringing in.

I don't see the need for a lawyer ur caseworker should be able to help.
Helpful Answer (1)

I’d like ASAP after Christmas call the bank that’s doing your HELOC (I’m assuming that’s what your are getting) and ask for it to be delayed till 2020. Like after 1/8/20 if at all possible so you have 2 weeks to clear figure out what the $ does to your eligibility.

if you have not yet signed the paperwork, don’t.
the banking group won’t be happy as the bank officer or branch manager may get points for bringing in lending, & they will want to close out all out before EOY; but you imho need to wait to find out exactly what the HELOC does to your Medicaid eligibility & that’s something you you to clearly discuss with your caseworker. It may not be worth doing if it takes you off Medicaid and you really need Medicaid coverage for the type of health issues you have.

If it’s a lump sum $$$ payout, and the $ is reported as income, it will pop up for 2019 filings to the IRS. And it will be just a few keystrokes for the State to find out and then your ineligible for anything low income as you have all that $.

if it’s a LOC type of HELOC (line of credit), that may be more manageable if you can keep the draw as low as possible so that you do not go over the MedicAID income max. Although a low draw (like say $200-400 a mo) may not give you the $ you need for your debts.

out of curiosity, if this is a HELOC, did you approach the bank on it, OR did a bank officer approach you to do an application??? Your like the 3rd home equity type of ? in a couple of months on this site. Imho HELOC are good for big home improvement stuff if the applicant is still working with a salary coming in, but is kinda predatory for those retired or low low income as they can’t afford taking on the debt. It’s not quite as bad as a Reverse Mortgage but it’s still debt that must be repaid as the loan has terms for repayment & can be called in and you will loose your home if not repaid.

& others have said, you do NOT want to gift any $ to your mom. this just sets up all sorts of issues for both you & her.
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If you were not caring for your mother full time, would you need to draw out the equity? Would you be able to work and therefore not be on Medicaid? And I'm not sure what you mean by "shared appreciation on my home equity." Do you share the home with your mom? Are you both owners? If you are using your own assets to care for your mother, maybe you should speak to your local Medicaid office and ask them how to handle the situation. I guess they could argue that it's your choice to care for your mom and not work.
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You are on a government program, supported by working and retired taxpayers, we are supporting you, when you have funds and can support yourself then you should do so...not try to hide assets and scam the system.
Helpful Answer (4)
JoAnn29 Dec 2019
Maybe the problem is she/he doesn't have enough to pay bills. Note she/he is not old enough to collect SS or get Medicare. He/she is just asking a question.
You cant draw the lump sum & gift it to your mother. Medi-cal considers it an asset. If you don’t spend down the lump sum within the same month (and again you can’t give the money away), it will affect your medi-cal eligibility. You’ll need to speak to an attorney well versed in medi-cal rules, if you don’t want to lose your medi-cal.
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