How Does Real Estate Affect Medicaid Planning?

When a homeowner goes on Medicaid, it becomes illegal for them to give away any assets or sell them at less than market value. Why? Because the government requires that liquidated assets should help pay for the owner’s healthcare. In many cases, the homeowner’s cumulative assets must first pay for their healthcare before they can qualify for Medicaid payments.

This is why a senior going on Medicaid cannot gift their home to a relative or offer a “price break” to any potential home buyer. If this should happen then the homeowner would become responsible for paying the difference between the sale price and the actual value of the home – before qualifying for Medicaid.

How Does a Medicaid Planning Appraisal Help?

Because of the potential costs and eligibility setbacks from failing to comply with Medicaid guidelines, it is important that a homeowner seeks a Medicaid Planning Appraisal – either directly from a pro or from an attorney specializing in Medicaid assistance.

A Medicaid Planning Appraisal will also guide the homeowner in estimating when the home becomes a Medicaid resource versus when it is exempt – and for how long.