I and have been on Medicaid If I sell my house will Medicaid take my profit or put a lien on my new house?

Asked 11 months ago - Wilmington, NC

I also have a trust fund.

Attorney answers (3)

  1. Kelly Scott Davis

    Pro

    Contributor Level 18

    2

    Lawyers agree

    Answered . If you sell your house and immediately purchase a new one which is your principal residence you are converting one exempt asset for another. Medicaid can put a lien on the new house. If you hang on to the money rather than immediately reinvest in a new home you are converting an exempt asset into a countable resource and that can disqualify you for Medicaid. There are several different types of trusts that are used when dealing with Medicaid and you haven't specified what kind you have. Your best and safest course of action now is to consult in private with an elder law attorney whose does Medicaid planning to make sure everything goes smoothly. You can locate an elder law attorney using the AVVO Find a Lawyer search tool.

    Responses provided on Avvo are for general informational purposes only, based upon the limited information that is... more
  2. Lawrence A Friedman

    Contributor Level 18

    2

    Lawyers agree

    Answered . I agree with Kelly on the law but I think you will lose Medicaid or suffer other negative consequences if you don't work with an elder law attorney. It should be possible to protect some or all sale proceeds but that would require compliance with complex Medicaid rules.

    Lawrence Friedman, Bridgewater, NJ. Certified as an Elder Law Attorney by the ABA approved National Elder Law... more
  3. William Ray Pelger

    Contributor Level 13

    2

    Lawyers agree

    Answered . sage advice from my peers. please find an elder law attorney versed in Medicaid laws before you do anything. Shop around they are out there.

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.

 

Ask now

30,630 answers this week

3,086 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

30,630 answers this week

3,086 attorneys answering