Even with maximum benefit, I still have to sell her house to pay. She paid 135,000 for the house. Owes no mortgage. A contract to sell is 138,500. She will walk away with $128,000. She has no income but 1700 ski and her monthly room fee is 3600. How do I handle this sale without compromising her qualification? I have durable POA.
Does her age allow for a Special Needs Trust? If so, get an Elder Care Lawyer and put the proceeds from the house into the SNT. This will protect her monetary status when selling her house and other possessions. Be sure to read the last paragraph of this answer.
It sounds as though you have looked into help through DSHS. What kind of employment did she or your Dad have? There are resources you may not be aware of. Examples are VA benefits (regardless of the length of service or time of service). Has she had a long-term care insurance policy? Although this policy may not pay with a diagnosed dementia it impossible it will pay for nursing care (such as medication regimen), disposable personal products (such as Depends or other personal hygiene items). In other words take apart her day and look for payment of smaller items or services these do add up.
Is there another person living in the home that requires aid and attendance. If so check with your state laws to see if they stay in the home, will she then qualify for higher financial aid. You may find the need to have a person knowledgeable of state and federal regulations walk you through this process. Be sure to read the paragraph below.
No matter the outcome and losses, the house was a rainy day fund she wanted to help her though her final illness. If it is necessary to sell it, then do so knowing that this was her nest egg for her senior years. Above all try to remember that no matter the emotional connection for you to the house - this is her monetary asset to carry her through.
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