Aug 03, 2016 - 07:29 AM
In Alabama, Medicaid will require the sell of the home at fair market value, unless there is a spouse or (I believe) a handicapped dependent, if she has to be placed while she is still living in the home. The money from the sale will go to pay off the mortgage, of course, and the remaining goes to cover the cost of her care.
I would just call your local Medicaid agency for your area. They should be happy to answer these questions and any others regarding her property, including vehicles. A person can still qualify for Medicaid without the sale of the house as long as you can provide proof that it is up for sale. I can't answer the question about what would happen if she passes and the property if still unsold. Your Medicaid agency would be the best to answer these questions.