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Can My Mother Sell Her House and Buy a New House with Me and Still Be Eligible for Medicaid?
I am hoping to buy a home and use some of the funds from the equity of my mother's home as down payment My mother would also live there and have her name on title. My question is this: Can she still receive Medicaid coverage and do the full funds of the home need to be transferred into a new primary residence for her? Also, will Medicaid try to recover the medical funds that have been used for her when her house is sold or upon her death?
The answer is that your mother can transfer her ownership in one property to another. She would have to use all of the proceeds if she wants to retain current eligibility for Medicaid. If your concern is for her future eligibility, then she would simply have to spend down any funds she retained before becoming eligible for benefits. Your mother's interest in the new property must reflect the amount she pays in. Your mother should not have to pay back for any benefits she may have received in the past when she sells her current house and the joint ownership with you in the new house should be able to be structured so as not to be subject to recovery by Medicaid upon her death. All of that said, this will only work if properly structured. Don't move ahead without consulting with a local elder law attorney.