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What Will Happen When We Sell My Mother’s Home While She Is on Medicaid?

  • December 6th, 2019
Q
My mom is in a nursing home and receiving Medicaid. She owns a home jointly with her children. Can we sell or rent the home while she is in the nursing home? What happens with the money?
A

Yes, you can rent or sell the home. As a co-owner, your mother will receive her proportional share of either the net rental income or the proceeds of the sale. In terms of income, her share will have to be paid to the nursing home along with your mother’s income. If you were to sell the house, your mother’s share of the proceeds would likely make her ineligible for Medicaid until the funds were spent down. In addition to paying for her nursing home care, you could use the funds to prepay her funeral if you have not done so already.

For more information about Medicaid’s treatment of the home, click here.

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Last Modified: 12/06/2019

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