First, let’s clear up a misconception. “Do I need to sell my home in order to qualify for Medicaid?” The answer is no.
But what if you or a parent has entered a long term care facility and the home is now vacant? What if you want to sell the property because the maintenance, upkeep, taxes and insurance are too much for the family to continue to carry while Mom or Dad are in a long term care facility? It is important to plan appropriately before selling the home to avoid harsh penalties when it is time to qualify for Medicaid, and to avoid disruption if already on Medicaid.
There are a variety of Medicaid strategies at our disposal that would permit someone to sell their home and protect the proceeds from either disqualifying them from Medicaid, or subjecting them to having to exhaust those funds to pay for the monthly costs of long term care. There are, of course, pros and cons as to each strategy you will want to consider.
Medicaid requires that an individual have no more than $2,000 in countable assets. So if you sell your home, you would undoubtedly have more than $2,000 in your name. There are different options we can employ to get those assets out of your name in a Medicaid-compliant manner and sometimes it takes a mix of strategies, as every case is different. If the proceeds simply sit in your bank account, this will almost certainly result in you becoming “over-assets” and kick you out of the Medicaid program. Working with the right realtor who understands the process and the need for a hand in hand relationship with your attorney is important. We have trusted contacts in the real estate industry that we work well with, and can refer you to. I am also a licensed realtor myself.
Sell the Family Home the Smart Way
First, let’s clear up a misconception. “Do I need to sell my home in order to qualify for Medicaid?” The answer is no.
But what if you or a parent has entered a long term care facility and the home is now vacant? What if you want to sell the property because the maintenance, upkeep, taxes and insurance are too much for the family to continue to carry while Mom or Dad are in a long term care facility? It is important to plan appropriately before selling the home to avoid harsh penalties when it is time to qualify for Medicaid, and to avoid disruption if already on Medicaid.
There are a variety of Medicaid strategies at our disposal that would permit someone to sell their home and protect the proceeds from either disqualifying them from Medicaid, or subjecting them to having to exhaust those funds to pay for the monthly costs of long term care. There are, of course, pros and cons as to each strategy you will want to consider.
Medicaid requires that an individual have no more than $2,000 in countable assets. So if you sell your home, you would undoubtedly have more than $2,000 in your name. There are different options we can employ to get those assets out of your name in a Medicaid-compliant manner and sometimes it takes a mix of strategies, as every case is different. If the proceeds simply sit in your bank account, this will almost certainly result in you becoming “over-assets” and kick you out of the Medicaid program. Working with the right realtor who understands the process and the need for a hand in hand relationship with your attorney is important. We have trusted contacts in the real estate industry that we work well with, and can refer you to. I am also a licensed realtor myself.
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