Will renting home affect Medicaid eligibility?

Renting out the home is permitted and will not turn the house into a countable asset. The net rental income would be countable as income to your parents. Note that in some states, after six months' absence from the house it can become a countable asset, if a doctor certifies the patient will never be able to return to the house to live.

Time for professional advice. One home is a non-countable asset when it comes to Medicaid as I understand it. I believe that if both parents indicate their intention to return to their home during their lifetime (just a formality, even it is unlikely or impossible) then they may keep it...However, renting it out provides income and the income must be counted.

I'd suggest getting a qualified elder care attorney and get his/her advice. Caveat: Three of four lawyers we consulted said they are elder care attorneys, but don't know much about it. Get referrals.

Grace + Peace,

Bob

In most states, it's non countable during the person's lifetime, but subject to a lien from Medicaid (MERP) upon death. Consult an eldercare attorney.

OldBob, makes a good point. Elderlaw attorney is certified in elderlaw and only a handful in each state actually are so check carefully. They will give u the best advice

Things to consider. Have you ever been involved with a rental property? Do you in the same area?

Being a landlord can be stressful all by itself especially if you do not live nearby. If you do decide to rent it out I would highly recommend letting a property management company handle it for you. There is a fee, but I have found it to be well worth it. They screen the tenants, collect the rent and enforce the terms of the lease, they understand the law between tenant and landlord for possible evictions, take care of all maintenance (you will pay for it) and also handle the problems that will arise. I have done it both ways but in my opinion, property manager is the way to go.

If the home is in a close neighborhood you may get by with no problems for a while should you choose to let it sit for a while, but beware word gets out pretty quickly that there is a fully furnished empty home. If it is isolated you might be surprised at how quickly the thieves find it. My parents home was empty with exception of a few pieces of furniture and appliances which were old and starting to yellow. I had a gate installed but that did not help much. Someone kicked in every door in the house, stole the appliances and left it standing open until I found it a week or so later. In short they did $4,000.00 in damage to steal almost worthless appliances I would have given them had they just asked.

Someone said:
"So...If you state intentions to return, it's non-countable? What if you spend down all other assets and are still in care/can't return? Wouldn't you have to sell and use the money to pay for care?"
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thing is, once they are on Medicaid, they are already "out of money". Each person on Medicaid is only allowed to have $2000 in cash. As I understand it, Medicaid won't go after the house until both are deceased. Best to check with an attorney who knows his/her stuff.

Grace + Peace,
Bob

Just my opinion. If they are never coming home, sell the house and put it in an annuity or something you can get some interest from. To me, renting would be more of a hassel. Keeping up property and taxes would be a hassel. I can't wait till Moms house sells. It will free up her SS check. Be aware, if u sell the house you must get a decent price. Can't be sold for $1. Medicaid will look at this.

Not to argue with JoAnn29, but if anyone on Medicaid sells a house then the proceeds instantly become countable assets and thus they would no longer be eligible for Medicaid. Doesn't matter whose name the annuity is purchased for. If the house is sold before they go on Medicaid, then the money is countable anytime with a five year lookback for gifting from the day Medicaid would startat any future date. I have not phrased this precisely but long story short, I don't believe it can be done.

Grace + Peace,
Bob

No problem. She said her parents have enough to pay for their care facility. I understand that the sale of the house will go for their care. Suggested an annuity or somewhere they will get interest. Annunities can be set up to withdrawl a certain amount a month when needed. Understand what u mean about hanging onto the house. I'm not ready for Mom to go on Medicaid. Hoping the sale of her house will help to put her in an AL for a couple of years.

Got it. Good thinking on your part.
Grace + Peace,
bob