Q: Medicaid question.92 year old father in rehab/nursing home will need to go next to long-term care. His income qualifies
him for Medicaid. His home has been a mobile home. Its fair market value is $7400 and that is his only physical asset. If he applies for Medicaid now and is accepted, as soon as we sell the trailer, his assets will be above $2000 which makes him ineligible for Medicaid until he spends down the proceeds. When is the best time to sell the mobile home, before he applies for Medicaid or after he qualifies and is placed in a long-term facility?
A:
It can work out either way. If you are able to find items to spend on now, before he needs Medicaid, then that is a good option. The main thing is to sell it for the proper blue-book value and spend the funds down before he needs Medicaid.
Or you can get qualified for Medicaid first. Then, when you sell it, you must spend it down that month. Therefore, it is a good idea to sell in the beginning of the month and spend it down by the end of the month.
A: Probably easiest before. Technically your home is only an exempt asset as far as Medicaid is concerned if you are "reasonably likely" to return home within the next 6 months. Since that is not the case, even if you don't sell the mobile home up front, it may cause eligibility issues.
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