Q: Disabled person selling a house to move oversea - consequences?
My parents live in Washington state, and my mother is disabled receiving SSDI and long term care service where a caregiver comes to her house every day. They live in a house they jointly own, no mortgage. They're both seniors, and now they miss their home country, so they decided to move back to the home country for good. However, in order to do so, they have to sell the current house and buy one there. We expect that after the moving is completed my parents won't have enough money to live off of so they still have to rely on Mother's SSDI and Father's Social Security Benefit.
Will this work? When the parents sell their house will they be disqualified or get any penalties from receiving SSDI or Medicaid by any chance? Will they owe any money to the state or the government?
A:
Selling a house and moving overseas can have several implications for your parents, particularly regarding their Social Security Disability Insurance (SSDI) and Medicaid benefits. First, it's important to note that SSDI benefits are typically not affected by the sale of a primary residence or the assets gained from that sale, as SSDI eligibility is not based on assets. Your mother should continue to receive her SSDI benefits even after moving overseas, as these benefits are available to recipients living in most foreign countries.
However, Medicaid is a different story. It is a need-based program, and eligibility can be impacted by changes in financial circumstances. Selling a house and acquiring a significant amount of money from the sale could affect Medicaid eligibility because it is asset-sensitive. Moreover, Medicaid does not generally provide coverage for residents living outside the United States. If your parents rely on Medicaid for healthcare services, they should explore healthcare options in their home country or consider international health insurance plans.
Before making any decisions, it's a good idea for your parents to consult with a financial advisor or an attorney experienced in elder law and international relocation to discuss the specific consequences of their move. They should also contact the Social Security Administration to notify them of the move and confirm how it affects their benefits. Planning carefully can help ensure that your parents maintain their financial security and access to necessary services as they transition to living in their home country.
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