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.
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Medicaid’s 13-month Rule
In most cases, homes are exempt as Medicaid resources during the first 13 months that an individual is on Medicaid. Even if a person moves into a nursing home facility, he or she can keep the house for the first 13 months without penalty. After the grace period, the home becomes a Medicaid resource and must be sold in accordance with the fair market value rules described above.
The exception is if the homeowner holds home equity in excess of $552,000. In such situations, the home becomes a Medicaid resource immediately without any grace period.
Why Choose Authority Appraisals?
At Authority Appraisals, we offer reliable Medicaid Planning Appraisals from our team of highly-qualified appraisers. Our expertise will help ease and guide this complicated process.
If you need help navigating the maze of Medicaid qualification and want more information, please Contact Us. If you are ready to get started, please complete our Order an Appraisal form and we will contact you with a free appraisal quote.
Authority Appraisals also can offer professional Brokerage Services under our sister company Rhodes & Associates Realty. For more information on our Brokerage services please visit us on the web at www.Rhodes-Associates.com
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