Elder Law Answers
Does Medicaid Consider a Rental Apartment an Asset or Income?
I have a second apartment that I rent out. I need Medicaid to pay for a short-term (one mon...
Read moreWhat Does Medicaid Consider 'Fair Market Value' When Selling a House?
- August 7th, 2018
Q
If a person is applying for Medicaid or already receives Medicaid benefits, what is the penalty if his or her house does not sell for "fair market value"? Additionally if it is not realistic that the house would sell for “fair market value” because it needs work, will the state accept that?
A
The market determines fair market value. If you put your house on the market, by definition, the best price you get for it is its fair market value. Any other determination, including by an appraiser, is simply a best guess. This gets complicated, however, if the sale is not an arms-length transaction. For instance, if you want to buy your father’s house and you believe that the appraisal over-valued it due to poor conditions, there are a few options. You could go back to the appraiser and explain why there should be an adjustment. You could put the house on the market at the appraisal value to show that no one will buy it at that price. Finally, your state Medicaid agency may permit a small adjustment, for instance a reduction in the amount of the standard realtor’s fee in your state if that is being avoided by a "friendly" sale.
For more information on Medicaid's asset transfer rules, click here.
Local Elder Law Attorneys in Ashburn, VA
Meet Mindy Felinton
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Mindy Felinton
Felinton Elder Law & Estate Planning Centers
Mindy Felinton concentrates in the areas of Medicaid planning, Veterans' Benefits, asset protection, nursing home planning, elder law, wills, estate planning, trusts, living wills, powers of attorney, probate administration and trust administration and began her legal career 30 years ago as an Assistant State Attorney...
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Meet Loretta Williams
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Loretta Williams
Hale Ball Carlson Baumgartner Murphy PLC
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...
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Meet Ron Landsman
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Ron Landsman
Ron M. Landsman, P.A.
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...
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