Selling a Parent’s Home When Entering Nursing Home Care

Deciding whether to sell a parent’s home when they enter a nursing home is a complex legal and financial matter. Understanding how this decision affects Medicaid (TennCare) eligibility is crucial to protecting assets and securing long-term care. It is best to consult an attorney when considering selling a parent’s home.

Consult an Attorney Before Selling

Before selling a home, seek legal guidance to avoid unintended consequences. Selling the home may disqualify an individual from receiving TennCare (Medicaid) benefits. A legal professional can assess your situation and provide strategies to safeguard eligibility while preserving assets.

How Medicaid Treats a Primary Residence

For Medicaid eligibility, a primary residence is typically considered an excluded asset when applying for long-term care coverage. This means the home does not count against financial eligibility limits if the applicant intends to return or a qualifying family member resides there. However, different rules may apply based on ownership status and Medicaid recovery policies.

Risks of Selling the Home

If the home is sold, the proceeds may be required to cover nursing home costs out of pocket before Medicaid benefits apply. This could result in a significant financial loss, depleting funds that might otherwise be protected through strategic planning. Proper legal advice can help navigate these challenges and explore alternative solutions.

Considering an Irrevocable Trust

To preserve assets and maintain Medicaid eligibility, families may want to explore an irrevocable trust. Placing the home in a trust at least five years before applying for Medicaid can shield it from being counted as an asset. This strategy helps ensure financial security while allowing access to necessary care.

How Olivia Wann Law Can Help

At Olivia Wann Law, we guide families through complex Medicaid planning decisions. Our team helps protect assets, explore trust options, and ensure compliance with state regulations. Let us provide the legal support you need to make informed decisions about your loved one’s future.