Jul 23, 2015 - 12:57 PM
Medicaid benefits vary by state and have complicated rules, so a lot depends on many facts that are not presented here. However, a Medicaid recipient’s home is generally an exempt asset, meaning that it will not prevent eligibility as long as it remains the recipient’s home. If the home is sold, the asset is converted to cash, which is not exempt, meaning that it might prevent your father from remaining eligible for Medicaid. Generally this will not require a repayment to Medicaid for the outlays it has already made on behalf of your father, but the proceeds would need to be spent or otherwise protected before your father could resume receiving Medicaid benefits. You will also want to be sure you have good advice on what kind of payback might be required at the time your father’s death—including if you decide not to sell the house.