As David’s mother Betty aged, her health rapidly declined and David was faced with a slew of new responsibilities. As her primary caregiver, he needed to stay on top of her medical and financial needs. Throughout all these new challenges, one hurdle scared him most — would Mom need to sell her home to qualify for Medicaid?

If Mom won’t be moving to a facility for the next five years, there are asset preservation steps you can take to ensure that her home will be protected. Seek legal advice to determine your options.

If, however, Mom is applying for Medicaid in the eleventh hour, she may be able to avoid selling her home if any of the following scenarios apply.

Please note that this post is intended as helpful information rather than legal advice.

Is there a chance that Mom will recover and be able to return home?

Many states will not require you to sell Mom’s home if there is a reasonable “intent to return home.” This is relevant if Mom is well enough to leave the facility and return home at a later date. A letter from Mom expressing her intent to return is generally enough to establish intent for Medicaid applications; however, in some states, further criteria, such as a physician’s assessment, must be met.

Will Dad be staying at home while Mom moves to a facility?

If Dad will be living at home while Mom moves into a facility, then he can keep his home. He can use his income to cover housing costs and may even be entitled to keep some of Mom’s income. Medicaid will calculate Dad’s income against his shelter costs to determine his MMNA (Minimum Monthly Needs Allowance) for covering his bills. It may also be beneficial to change the deed from both of their names to only Dad’s name. Seek legal counsel to determine the best steps in your situation. You can use our Asset Allowances tool to view spousal allowances in your state.

Does Mom have a child living in her home or a child who served as her caregiver?

If Mom has a child who is a minor or permanently disabled, Medicaid may allow you to transfer the home to the child’s name. In this situation, you should seek legal advice on the best way to go about this.

An adult child who served as a full-time caregiver for Mom may also be entitled to the home. The caregiver-child would need to have lived with Mom in her home for at least two years and provided care that allowed Mom to continue living at home. This can be complicated to prove if the caregiver had a job that impeded his or her ability to fully care for Mom, or if medical records do not reflect a need for an institutional level of care.

If none of the above situations apply, Mom may have no choice but to list her home. It’s important to note that Medicaid may impose a penalty if the home is sold for less than fair market value. This can result in a catch-22 where Mom’s home needs to be sold but a buyer willing to pay a price considered fair by Medicaid can’t be found. As with any complicated Medicaid situation, we are here to help.

We are a Medicaid application company that can assist you with all your questions during this overwhelming time. We handle all the details, leaving you with peace of mind and approval in hand.

Contact us at  (855) 775-2664 for a free consultation.

* The term ‘Mom’ was used for readability; however, the same would apply to Dad if he were applying for Medicaid.