Do I have to pay back Medicaid if I sell my house?

Do I have to pay back Medicaid if I sell my house?

Once the home is sold and the proceeds come in, the Medicaid recipient must disclose the sale to Medicaid within 10 days as a change of circumstances. In order to keep Medicaid, the sales proceeds must be legally spent or protected by the end of the following month.

Can I sell my house while on medical?

First, if you own a home, you can still qualify for Medi-Cal. California has one of the best health services in this regard because California does not ask that you sell your home and pay for your medical needs, but rather it will front all the medical bills for you while you are alive.

Do you lose your equity when you sell your house?

Home equity is the difference between the market value of your home and the amount you owe on your mortgage and other debts secured by the home. If you sell a home in which you have equity, you can keep the difference once closing costs are paid and use it for new housing, other expenses, or savings.

What happens to your house when you go on Medicaid?

After a Medicaid recipient dies, the state must attempt to recoup from his or her estate whatever benefits it paid for the recipient’s care. This is called “estate recovery.” For most Medicaid recipients, their house is the only asset available, but there are steps you can take to protect your home.

Does Medicare take your assets?

Medicare, as a rule, does not cover long-term care settings. So, Medicare in general presents no challenge to your clear home title. If you are likely to return home after a period of care, or your spouse or dependents live in the home, the state generally cannot take your home in order to recover payments.

Can you sell a house if you haven’t finished paying the mortgage?

Yes, you can sell your house before paying off your mortgage. Mortgages range anywhere from 10 to 30 years so most homes sold in the U.S. aren’t fully paid off. Don’t sweat if you only paid off half your mortgage or less, you can still get into a great new home.

Can Medicaid Take your estate?

Medicaid is a means-based program. This means that you must be under a certain income and asset limit in order to qualify. As a result, in order to collect costs from the deceased persons estate, Medicaid can take your home after death.

Can I Sell my House before I qualify for Medicaid?

A home that is your primary residence is considered a non-countable asset because its value doesn’t count towards your asset limit. [1] However, if you move out of the house and it is no longer your primary residence, it becomes a countable asset. Based on this, you could disqualify yourself from Medicaid before even selling your home.

Does the home equity rule apply to a Medicaid application?

The home equity rule does not apply if the Medicaid applicant’s spouse or a child who is under 21 or is blind or disabled lives in the home. While the house may not need to be sold in order to qualify for Medicaid, state Medicaid agencies will likely place a lien on any real estate owned by a Medicaid beneficiary during his or her life.

Can a Medicaid beneficiary force a sale of a house?

A Simple Answer: As long as either the Medicaid beneficiary or his / her spouse lives in the home, Medicaid cannot take the home or force a sale. However, there are many complexities and nuances. Medicaid Estate Recovery Program Rules All 50 states and the District of Columbia have Medicaid Estate Recovery Programs (abbreviated as MERP or MER).

How do I spend down assets to meet Medicaid’s asset limit?

In this situation, it becomes necessary to “ spend down ” the excess assets (the profits from the sale of the home) in order to meet Medicaid’s asset limit. This can be done by paying off debt, purchasing an irrevocable funeral trust, buying an annuity, paying for long-term care, and even taking a vacation.