My mother (88) has been living with me for 2 1/2 years. We have now decided to sell her house. Can she buy equity in my home?

Mixing your money and real estate ownership with your mother can be complicated. If you both decide to go down the path of using her money to pay out your ex’s equity in the house, it might be better for her to lend it to you, secured by a mortgage. That’s not advice from me, but an option to raise when you seek legal advice. Make sure you find a lawyer experienced in Medicaid/care rules – it’s not ordinary ‘law’.

I would not recommend this. If she should need Medicaid the house is partially hers. Even though its not considered an asset when she passes Medicaid will put a lean on it. You will be able to continue living in the house but if you sell the Medicaid lean will need to be satisfied. If u sell Moms house it has to sell at Market Value if Medicaid ever is needed.

If it were me, I would put the proceeds of the sale in the bank. Then use the money for Moms care. You may need aides at some point. A nice AL. Its easier to get her into LTC if she private pays for even a little while then apply for Medicaid.

just a thought here, maybe another option.
Can you "charge" your mom for the care you are giving her?
$xxx.xx for rent, $xx.xx for utilities, $xxxx.xx for your care of her and so on.
You might not be able to "charge" her for the past 2 1/2 years though.
As others have noted it might impact Medicaid.
The best option might be to talk the options over with an Elder Care Attorney

Yes it will have Medicaid repercussions. Get with an elder law attorney to advise what may be able to be done. Her money and assets are for her needs and care.

To qualify for the exemption you must have provided medically necessary care, for a period of two years, that kept her out of a nursing home. Assisted living or memory care do not count.

For something this involved, you really need an attorney to make sure everything is done right. Being approved for Medicaid is very important and being denied can be devastating. Find an attorney who specializes in Medicaid.