I have a client whose mother is in a long term care facility. She would like for Medicaid to continue to pay her bills. For them to do this, all of her assets will need to be spent. The family home is her largest and last remaining asset. Once the home is sold, the proceeds will be endorsed over to Medicaid.
Normally, the family home would be a protected asset and would be shielded from Medicaid. In our case, the homeowner has moved into a nursing home with little probability of returning. It has now become a countable asset and will need to be sold. Once sold, Medicaid will file a lien on the property to protect their interest before closing.
This should be handled as a normal home sale. The difference is that Medicaid will need to sign off as this being a fair market transaction.
These sales are not uncommon. I often see them mentioned in the agent notes or not at all. Some real estate agents in Louisville KY don’t think that it is a big enough deal to point out in the disclosures.
If you have any questions about this or other real estate questions in Louisville KY feel free to Steve Dobbs.
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