Selling home of an elderly friend on Medicaid. What do I do with the proceeds of the house? -

Selling home of an elderly friend on Medicaid. What do I do with the proceeds of the house?


I am going to be taking care of an elderly friend in my home. He is currently on Medicaid, if we sell his home and he moves in with us, what do I do with the proceeds of the house? I think after he passes away that Medicaid will want whatever is left from the proceeds of the house. It will probably be about $70,000. He is sickly and goes to MD appointments a lot so I know that Medicaid has put a lot of money into his cares. He is also currently getting home health services at his home. (Both attendant and home care hours) He is on SS. I want to be able to use a portion of the money to make our bathroom wheel chair accessible. Is this ok? I also work full time, is it ok to have the home health agency come to our home to care for him while we're gone? And how do I protect the money until he actually passes away. (Trust or ...)

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Thank you for your answers. Yes, I am the POA and have been for 8 years. He's still of sound mind. I will consult social services and an attorney.
Helpful Answer (1)

I think you'd better discuss the gentleman's care plan with his current team. It isn't that there would be a problem with his change of address, and their coming to him in your home; but are you clear about how much assistance he needs? And that you'll be able to combine looking after him with your work, especially in the future? You may also find that once he isn't living alone any more his entitlement to home health care is reduced.

I think you may also find that once the house is sold Medicaid will want the money immediately. They put a lien - a claim for the future - on the house of a person who is in residential care, but the reason for that is that the person could, hypothetically, choose to return to his home and may not wish to sell; and current social policy does not force vulnerable elders to sell their homes, it's not a vote-winner. Once the house is cashed in, though, "going home" isn't an option and the exception no longer applies.

It may be that reasonable adaptations to the gentleman's new living environment could be funded either with his own money or with some sort of state assistance. But the fastest way to find all of this out is going to be through social services in your area. Call them and get advice - about everything.
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That is great that you are willing to help an elderly friend who is on Medicaid.

Who is your friend's Power of Attorney? If there is no POA, he would need to assign someone, if his memory is still pretty good.

I would suggest you talk with an Elder Law Attorney regarding what is allowed and not allowed with Medicaid. I know that the equity in your friends house has to go toward his care, so he probably will be on vacation from Medicaid until the money is used. As for updating your bathroom, that would be a good question for the Attorney, since it is your house and not his.
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