Medicaid logistics when property is sold?
My husband and brothers own a piece of land (as tenants in common), and one brother was just approved for NH Medicaid. Medicaid case worker said the brother's share was not being counted as an asset of his since there are the other owners who do not wish to sell the land. They realize that if they do sell, the brother's share will have to go to his NH cost and he will be ineligible for Medicaid until that's spent down. Logistically, if the land is sold are the proceeds treated as they would be for the Medicaid estate recovery program after someone dies, i.e., pay back the state for Medicaid funds already spent? Or, would he just become ineligible for Medicaid going forward for however many months it takes to spend down the funds? Do you think they would just suspend his Medicaid, or would he have to fill out a whole new application? Other than the temporary new funds, nothing would have changed since the original application was submitted and approved.
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If y’all do not have a copy of his Medicaid application, need to get it.
Regarding “temporary new funds”, should the guys sell the land & $ divvied up, the $ paid to NH brother is considered his “income” the month paid to him (the month the Act of Sale done) and then $ is an “asset” subsequent months. Medicaid has strict $ amount for both income and assets. Income abt $2100 in most states, assets 2k.... your state will have a specific $ amount. That sale will take NH bro over 1 way or another unless there’s a plan at the ready to use the $ that is ok for Medicaid. Property transfers are recorded to the penny so state database will have this info. Medicaid will know eventually. It’s best yo deal with this proactively.
There needs to be a plan in place as to what to do with the $ ahead of the sale. I’m with Geaton that this is best discussed with an elder law atty as they know the exacts on Medicaid regulations for your state.
personally I’d try to find an atty. BEFORE placing property on the market. Why? well (& stick with me on this) if bro is already in LTC NH Medicaid, his monthly income (like his SS $) is required to be paid to the NH as his copay; So due to copay, bro has no $ to pay his share of property taxes and other property costs; So your hubs & the other bro’s will have to cover NH bro’s share; but as NH bro is equal ownership so when it is sold he gets his full share; hubs & other bro’s cannot deduct what they chipped in to cover NH bro’s share; cause Medicaid will look upon that as “gifting” (of bro’s $ to others) and not allowed and makes him ineligible for Medicaid... remember the sale price is in state’s database. If there is something that can be done to work thru this proactively, the elder law attorney will know what’s feasible for how your state runs Medicaid. Not really a DIY.