My parents moved into my home a few months ago due to declining health. Dad has been in and out of skilled nursing with increasing cognitive and physical problems, and I am worried he may need to transition to long term skilled nursing care in the next few months. They have good pension income but no savings or assets aside from their home and a car. The home has a mortgage with approx. 40k of equity. Home is in dad's name only and now they want to sell it. I am concerned that having the home is fine, but once sold the cash will be problematic for Medicaid purposes, and am worried about dad being ineligible for Medicaid if he needs to be in skilled nursing long term. If they sell the home, what do we need to do with the money in order to maintain his ability to qualify for Medicaid?
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At this point I wouldn't hire an elder lawyer. And if you do, make sure he/she is well versed in Medicaid. We have had members say they have consulted with a couple with different answers. I would make an appt with Medicaid first. Each situation is different. Then if you feel a lawyer is needed OK. Medicaid allows for ur parents money to be used for this.
If it does come out that Dads pension/SS is over the cap, ur State may allow a Miller Trust (or something similar). Lets say the cap in ur state is 2200. Dads income is 2400. With a Miller Trust that xtra $200 goes into the trust. When Dad passes, the Trust reverts back to Medicaid.
Medicaid is federally funded and as such there are basic rules that each State needs to follow. But each State can implement their own rules making each State a little different in how certain things are done.
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They will not leave your mom impoverished but, it needs to be set up properly. It is well worth them spending some money to get it sorted.