My name is***** and I will be helping you with your question today. This is for informational purposes only and does not establish an attorney client relationship.
In order to be eligible for Medicaid benefits a nursing home resident may have no more than $2,000 in "countable" assets (the figure may be somewhat higher in some states). Note that Medicaid is a state-run program, so the rules are somewhat different in each state, although there are federal guidelines.
All assets are counted against these limits unless the assets fall within the short list of "noncountable" assets. These include the following:
Personal possessions, such as clothing, furniture, and jewelry. One motor vehicle, regardless of value, as long as it is used for transportation of the applicant or a household member. The value of an additional automobile may be excluded if needed for health or self-support reasons (check your state's rules).The applicant's principal residence, provided it is in the same state in which the individual is applying for coverage. Under the Deficit Reduction Act of 2005 (DRA), principal residences may be deemed noncountable only to the extent their equity is less than $552,000, with the states having the option of raising this limit to $828,000 (in 2015). In all states and under the DRA, the house may be kept with no equity limit if the Medicaid applicant's spouse or another dependent relative lives there.
So in order for her to be eligible for Medicaid, she will have to deplete her funds although many transactions are subject to the 5 year lookback period that will still count assets that have been moved out of the estate in the last 5 years. With just the basic information you have provided it seems unlikely that she would qualify but it would be a good idea to put as much into the home as possible while depleting the countable assets I have listed.
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