My mother was admitted to a nursing home in November 2016. At that time we applied for Medicaid and she was approved. In A...Read more
There’s no one answer to this question for everyone. In most states, the Medicaid agency will have a lien against the house to recover what it has paid for your mother’s care when it’s sold, whether now or after she passes away. The benefit of keeping the house is that the Medicaid payment rate is usually substantially less than the private pay rate for nursing homes. If you sell the house, your mother will go off of Medicaid and you will have to spend down the proceeds at the private rate. So you are generally better off delaying the sale of the house.
For example, if the private pay rate for the nursing home is $10,000 a month, but the state pays $7,000 a month for your mother’s care, then you ultimately save about $3,000 every month you delay selling the property.
Local Elder Law Attorneys in Ashburn, VA
Ron M. Landsman has been practicing elder law since 1983, before it was known as elder law, originally with Landsman and Laster, Washington, D.C., then Landsman, Eakes and Laster, also in Arlington, VA, and since 1990 in his own practice in Montgomery County, Maryland. He has been among the most active members of the...
John Laster is a lawyer licensed to practice in Virginia, Maryland and the District of Columbia. He limits his practice to wealth transfer planning, trusts, wills, powers of attorney, health care decision-making issues, estate administration and related tax, elder law and disability concerns. Listed in The Best Lawyers...
Margaret A. O’Reilly is an estate planning and elder law attorney with over thirty-five years of legal experience. Attorney O’Reilly graduated from Duke University with a degree in psychology, and received her law degree from Northeastern University School of Law in Boston, Massachusetts. For over 15 y...
That said, you need to balance this against the cost and trouble of maintaining the house. In addition, if she lives for a long time and the value of the house is small, your mother may run through the entire proceeds even at the Medicaid payment rate.
I would, however, suggest consulting with a local elder law attorney to see if there are circumstances in your situation or state that would lead to a different response.
For more on Medicaid planning, click here.