When does home become a countable asset?
In short, a home (and one lot) is normally an exempt asset for a Medicaid long term care applicant.[1] If the home is sold and the proceeds of the home are not reinvested into another home, the proceeds become countable. Additionally, to the extent that the single Medicaid applicant does not intend to return the home, the home becomes a countable asset. [2] Finally, if there is substantial home equity in excess of $552,000 in 2015, Medicaid is restricted as long as the equity is beyond the foregoing limit. Exceptions exist to the home equity rule and are set forth in the home equity rules set forth below.[3]
The Utah Department of Health Policy Manual (PM) Section 521-19 provides that proceeds from the sale of an exempt home may be excluded if the applicant commits to purchase a replacement home within 30 days and the transaction is completed in 90 days. Extensions may be granted. Excess proceeds must be fully reinvested.
[1] PM Section 521-1.
[2] PM Section 521-1.
[3] Substantial home equity rules do not apply (371-3) in two situations: The individual’s spouse lawfully resides in the home, or the individual’s minor child, or blind or disabled child, lawfully resides in the home. Unless presented contradictory evidence, assume the occupation of the home by a spouse, or a child is lawful.