I am in process of moving my aunt to nursing home and applying for Medicaid because she has now run out of money to pay for assisted living facility. I was told most likely medicaid will seize her home. What if she only lives a year; she is very ill. Will they keep the entire sell of the house?
Medicaid is a joint program with state funds, and rules differ state to state. You would be wise to seek the assistance of an elder care attorney to have questions such as this answered for your own area. You cannot afford to make mistakes by taking advice from people on a Forum. There are a few here who are very informed about these things, but legal and medical matters require your own expertise sought in your own area of the country.
I agree with Joann that the best thing to do might have been to sell the home and use the assets to keep the Aunt in her ALF, which is often very preferable over nursing home.
Why was the house not sold to pay for her care in the AL? She could have remained longer. If u hold onto it, someone will need to pay the bills until her death. Then, Medicaid will put a lien on the house because the house is no longer exempt. If someone is living in the house again they have to show a reason they should be allowed to stay. If Medicaid does not except someone being allowed to stay in the home, it needs to be sold so Medicaid can get recover the money they spent on the person's care.