My wife and I would like to sell our large single-family home and move into a rental community. Would it make more sense t...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.
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For Jeffrey Hammond, the practice of Elder Law is personal. Jeff’s many years of experience in law and in business did not prepare him for the crisis he faced in 2005 and 2006 when his father suffered a stroke and both of his parents suffered from dementia and other medical problems. At that time, Jeff began an i...
Loretta Morris Williams is a certified elder law attorney by the National Elder Law Foundation. Ms. Williams was admitted to the Council of Advanced Practitioners, National Academy of Elder Law Attorneys (NAELA) in 2012. She serves as President of the Virginia Academy of Elder Law Attorneys. Ms. Willia...
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.