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If I pay off the loan, then sell it to a dealership, will this be an issue? I had the car sold to someone who paid off the loan, then decided they did not want the car. Now I must reimburse that person. When I sell the car to a dealership can I ask for the amount of my reimbursement to be made payable to me and the rest be made payable to her for paying off the nursing home or will this just invite another issue for Medicaid? It doesn't seem right that I pay off her car and she gets penalized if the car is an excluded asset to begin with.

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Your mom is perfectly eligible to sell her car. The proceeds must be used for her needs. Does she owe the nursing home for a time prior to Medicaid? Is she on Medicaid now? Clarify that, please.
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I don't understand the situation. Why didn't the funds from the sale go to pay off the lender? It's my understanding that the Medicaid recipient is allowed one car, with no penalty, but, you would have to pay for the taxes, tags and insurance or just park it, since, she won't be able to afford those things. I hope someone who knows your answer will respond.
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