What happens to my medicaid if I sell my home and buy another?
When a person leaves their residence to enter a nursing home typically that home is an exempt asset, i.e., it does not count against them when they apply for Medicaid.
If the person later sells that home, the proceeds must be reinvested in another home within 90 days or the entire amount of the proceeds will be deemed countable assets.
Whatever portion of the proceeds are not so reinvested will become countable assets. Since a person on Medicaid may not have more than $2,000 in countable assets, such person may then become disqualified if the amount of countable proceeds exceeds $2,000.
Some additional planning may be needed at that time if there will be excess proceeds, to ensure continued eligibility under the Medicaid program. Note that different rules may apply if there is a spouse living in the house.
Find out more at www.medicaidsecrets.com