How Will Taking Out a Reverse Mortgage Affect Home Care Benefits?

My mother is currently receiving home care services under New York's Medicaid program. If she takes out a reverse mortgage on her home and gives me some of the money to help me with the downpayment to buy myself a home, will she be disqualified from Medicaid when she recertifies? 

She may be. I’m not sure about New York, but in Massachusetts, where I practice, doing so would only make your mother ineligible for home care benefits for the month in which the transaction occurs. However, it would make your mother ineligible for nursing home benefits for up to five years. You will have to check with a New York elder law attorney to see what the effect would be on New York Medicaid. This would be a good idea in any case before taking out a reverse mortgage so you and your mother understand all of the implications of taking such a step.

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