Elder Law Answers
Will My Mom Still Get a Penalty Period If I'm Using the Transferred Money to Pay Her Expenses?
My mother sold her home a year ago and moved into an independent living apartment. She had early stage dementia. The money...
Read moreWill My Mother Get a Penalty Period If She Sells Property Before Applying for Medicaid?
- August 7th, 2019
Q
Is there a waiting period or penalty if I sell my mother's house and car ($90,000), so she can qualify for Medicaid to use for assisted living or a nursing home?
A
No, there is no transfer penalty or waiting period if an applicant for Medicaid benefits sells property at fair market value and then spends the funds on her own needs (or if her agent does so on her behalf). But the applicant needs to be able to demonstrate that the property was sold for market value and how the proceeds were spent. For information on how to spend down assets, click here.