One common misconception for those who have entered a nursing home is that the home must be sold before one can attain Medicaid eligibility. This is simply not true. The home is exempt from counting as a resource for Medicaid eligibility purposes if it is the principal residence of the following:
• The applicant/recipient;
• The spouse of the applicant/recipient;
• The parent of an applicant/recipient under age 18;
• The biological or adoptive child under age 18 of the applicant/recipient;
• The biological or adoptive disabled or blind child age 18 or older of the applicant/recipient.
If none of the above-referenced individuals are residing in the home, then the home is exempt from counting as a resource for Medicaid-eligibility purposes if it is for sale or for rent. Form FI 0118, “Agreement to Offer Property for Sale or Rent and Repayment Agreement” (download the form here), would need to be completed to show the Medicaid caseworker that the home is currently for sale or for rent at fair market value. When the form is signed, it is effective “for the purposes of the application”, that is, inclusive of retroactive months for that application date. To be considered offered for sale or rent, a sign must be placed at a conspicuous location on the property, stating clearly that the property is for sale (or for rent) and giving the individual’s name and address (or telephone number), or listing the property with a realtor.
If the home, or other property, is sold at some point after Medicaid is approved, then the proceeds from the sale of the home would need to be spent down appropriately. If the home is not sold upon the death of the Medicaid recipient, and none of the above-referenced individuals are residing in the home at the time of the Medicaid recipient’s death, then the State of Indiana may seek recovery from the estate for repayment of any Medicaid benefits paid out during his or her lifetime.
Check out my blog regarding asset protection in such cases at www.EvansvilleAttorney.com/protect. Contact my office at 812–423-1500 to schedule a free consultation to discuss your situation if you, or a loved one, are in a nursing home and have questions about asset protection.