Fort Myers, FL asked in Estate Planning and Health Care Law for California

Q: Can funds from sale of land/vehicle be used to pay sister's debts (credit cards) then qualify for Medicaid? Options?

My sister is in a rehab center due to a stroke (occurred in July this year). Wish to move her to Florida, to be closer to family, where she will remain in a rehab center to continue her recovery process. I applied for Social Security Disability and SSI on her behalf and of course looking to qualify her for Medicaid. She does not qualify for the disability due to a lack of earnings. Contingently approved for SSI -was just informed by the caseworker that she has property in her name with a current $$ value (nothing is on the property, it's only a piece of land). In addition, the only other assets, to our knowledge, are two vehicles (one inoperable) which I shared. They are going to need the year, make and model of the vehicles and how much the operational vehicle is worth. He proceeded to inform me these items would disqualify her for SSI due to the fact the SSI is for those with a disability and no other resources. Can $$ from the sale of land and vehicle be used to pay her debts first?

1 Lawyer Answer
Nina Whitehurst
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Answered
  • Estate Planning Lawyer
  • Crossville, TN
  • Licensed in California

A: Yes in general funds from the sale of assets can be used to pay debts but you really should schedule a personal consultation with a local elder law or special needs attorney because there are exceptions to every rule and you want to be certain. Her individual circumstances need to be reviewed. For example if the debts were incurred to make gifts, that would not work.

James Edward Berge agrees with this answer

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