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Generally, a single or widowed person can enter a nursing home and have the nursing home costs covered by Medicaid even though the person owns a house. In that case, Medicaid pays the nursing home bills but can place a lien on the house equal to the value of all the money it spends on nursing home care for the owner of the house. That money is then collected out of the value of the house when the house is sold or the person dies.
Thus, if your mother were to sell the house, the proceeds from the sale become unprotected assets, meaning that they would count toward the Medicaid eligibility limit. These assets, assuming they're more than just a few thousand dollars, would then disqualify her from Medicaid coverage, and she would have to pay for the nursing home herself. If and when she spends enough of that money to get back down to Medicaid asset eligibility limits, Medicaid could start paying for her nursing home care again.
If you're thinking about your mother selling the house and then her giving the money to or spending it on her family members, be aware that Medicaid has a tough rule against that. The amount of any gift (or exchange for less than full market value) your mother makes within 60 months prior to applying for Medicaid nursing home coverage is still considered part of her assets, and if the amount is over the Medicaid asset limit it could disqualify her from Medicaid nursing home coverage for a considerable length of time.
Can she used the proceeds to pay for a different primary residence?
What about my brother being on the title and deed? Will they take half of the value?