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My Mother needs Medicaid coverage to move to nursing home from assisted living. The house was sold last year and the money made was used to pay her assisted living costs. Also she had $40K retirement in IRA that was used for assisted living cost. When applying for Medicaid will these 2 items result in a penalty for her?

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Ditto to Maggie's reply. No worries
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As long as the money was used to pay nonfamily members for her care, there won't be a problem.
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