Dad was approved for Medicaid. Mom wants to sell their house. Can she do that without affecting his Medicaid?

lily78: Retain an elder law attorney.

The proceeds from house belong to mom and dad. Medicaid would calculate how much of the money would be considered an asset to him and it would be used to pay for the nursing home until spent down to (probably) $2000 or less in his bank account. Then he would go back on Medicaid paying for his nursing home bed. Pretty certain whatever is determined to be his share of the home sale will have to be used for his medical care. That's what medicaid is all about: if you have any savings, assets, money - you use that first to pay for NH. State helps you when you run out. You can't give away money or sell/giveaway houses or properties below property value just to get a free NH bed.

The next problem you may have is if you use what is left of her money to buy a new house with you as co-owner. There may come a time she needs to be in nursing home and your state may consider her part of equity when she dies as needing to repay the state for Medicaid benefits.

Next you have to address dad in approved Ohio nursing home. Are you going to leave him in Ohio when mom moves to Kentucky?

You really need to contact the Medicaid worker in Ohio to find out how much of house would be considered his part for sale purposes. Or talk to an Ohio elder attorney. Then you need to contact Kentucky Medicaid, or Kentucky attorney, to find out how buying the house together would effect her with Medicaid if she needed NH in the next 5 years (the normal look back period).

This is a legal question that requires an attorney IN THEIR STATE.
If the home was bought before their relationship and remained in her name only and he contributed no funds toward it, then she has a chance to be able to sell with it remaining her assets.
But in many states, despite it being in her name, there are laws around marriage that made him a partner in any profit on sale of this home (if he contributed, if it was bought when they were married, dependent on the community property laws of the state and etc).

This is not something for a Forum of folk to guess about. This is something you CANNOT AFFORD TO BE MISTAKEN ABOUT. So everything is on hold until an attorney consult. I hope you will tell us what the attorney tells your mom and what state you live in as that's interesting and good information for this forum, and I sure wish you good luck.

Speak to an elder attorney before any move. The home is in her name only. Whatever state they are in needs to be checked by the attorney. As far as co mingling the purchase of a home. DO NOT DO THIS. There are many hardship stories on thes Forum if mom suddenly also needs Medicaid. Again, speak to an attorney but in the state that you plan to move in together

This is of interest as we’ve decided to sell my parents home and move them closer to us. Medicaid has it listed as an exemption. I’m wondering if out in my name, then selling would be a better option, tho a bit sneaky 😬 if they lose their Medicaid it would definitely hit us all hard!

Yes, it may cause problems. If jointly owned, half of the proceeds will need to go to Dads care which means Medicaid stops until she spends down his half. I hope that Mom had their assets splitbefore applying for Medicaid. If so, talk about selling with her lawyer.

Go to a Real Estate attorney, explore the options.

Here’s what I think issues will be for your plan - and I don’t think it’s a dealbreaker but more you may have to adjust the plan:
- I’m assuming house titled in both names so…..
- is Dad still competent & cognitive? Like able to go to title or atty office to do signatures for Act of Sale?
- if not, as they are married, mom needs to find out if she has ability to do signatures needed to place home with a Realtor listing and Act of Sale 100% on her own. That answer is determined by her States laws, so it is a legal ?. Realtor if in a big group may be able to shed light on this. Personally I’d go with a real estate atty for this and this relationship w the RE atty she also uses to go over all the paperwork on the house and perhaps deal with Medicaid lien later, if need be.
- if house only in her name, she / you have to find out from Medicaid if it considers house sale $ as a joint asset. House owned by her but $ from sale considered joint.

All important as Dad is on LTC Medicaid which has 3 requirements which could be an issue:
1. Any change in his resources (income & assets) has to be reported to Medicaid and could jeopardize his eligibility for LTC to continue paying for this NH custodial cost if over 2K for most States. Something mom or you need to find out and in writing from his caseworker as to what they will consider house sale $ as. Proceeds $ amount matters, as it might - just might - after mortgage is paid off, be under the $ amount she as a Community Spouse is allowed to retain as her own not shared asset. CS exempt asset limit varies by State, some 130K, others 50/50 & some do assets not counted. Their home State Medicaid regulations matter; not a DIY, but needs atty experienced w/Medicaid.
- Is it 50% his so he’s has to do a spend down of his 50% $ then do a fresh LTC application once @ 2K in assets and if mom at this point in time is now living in KY, can she still do what’s needed? OR
- is all $ from house sale available for her to buy a house and does it have to be bought in joint title or only in her name is ok?
- Does sale of old / purchase of new need to all be done in a single month window? so Dad starts the month ok for LTC ends the month ok for LTC as both deals done within the month. This might be really hard to do as last minutiae happens.

2. LTC Medicaid allows those on it to continue to own their home as an exempt asset. (& mom should - hopefully - be getting Community Spouse waiver of his income paid over to her as there’s a mortgage, rather than almost all going to his NH as his required Share of Cost.) House being exempt tends 2 B based on being a homestead. An out of State property in KY will not meet this qualifier for Dad. So if mom does this, and as they are married, does it make him ineligible? And if so, then what? Do they need to divorce or legally separate for her to buy in KY without affecting his LTC Medicaid?
- if it’s that new house has to be in current State, this changes plan. Y’all have to find out abt this and might need to consider mom gets something smaller in current State & after a bit of time she rents it so she can set up another place in KY with you & titled via a Trust or she pays u rent in a home in only in your name.

3. LTC Medicaid has required attempt to do recovery after death of any of his assets. If house is considered 50% his, does their State waive this as the CS lives in the house. OR
Does State place a claim or lien, so when she eventually sell it, Medicaid lien gets paid. And if it’s this, what’s the Statute of Limitations for this?

It’s not a simple straightforward path. Realistically it’s atty work. And an atty experienced with Medicaid administrative codes.

As an aside, I’d be hesitate in buying a home w/elderly parents, bc you could be going through LTC Medicaid for her in KY. It would probably be better for her to pay you “shared household costs” or rent for the new place in KY in your name. Good luck in all this.