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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 2608
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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85 yr old elderly father sold his home for $30,000 and is now

Customer Question

85 yr old elderly father sold his home for $30,000 and is now concerned he will lose his medicare/medicaid (medical) help
Submitted: 2 years ago.
Category: Finance
Expert:  Tax.appeal.168 replied 2 years ago.
The proceeds from the sale of the home is a countable asset which is taken into consideration for medicaid eligibility. SEE BELOW: The home is an excluded resource in determining Medicaid eligibility, regardless of its value. Medicaid policies protect the home for the use of recipients and certain close relatives. Not all houses are “homes.” A recipient’s house can lose its protected status and become an asset available to pay for long-term care when it is no longer a “home.” When does the transition happen? An exempt “home” generally becomes a countable asset -- that is, its equity value is counted against Medicaid eligibility limits -- if the owner has no living spouse or dependents andMoves into a nursing home or other medical institution on a permanent basis without the intent to return,Transfers the home for less than fair market value, orDies.Using home equity: When the house is no longer a "home" and becomes a countable asset, Medicaid may require its equity to be spent on the homeowner's healthcare costs. A lien may be imposed on the home to ensure this outcome. The homeowner may also lose his or her Medicaid eligibility, at least temporarily. State variations: Treatment of the home in specific cases varies from state to state. Each state has flexibility, within broad Federal guidelines, to determine its own policies and procedures for viewing the home as a countable or exempt asset. REFERENCE SOURCE: Let me know if you require further assistance with this matter.