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Can you use the money from the sale of a home to pay a health care agency for in home care and be safe from the Medicaid 5 year look back rule so the person can stay home instead of a NH?

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I so agree with mstrbill.
You can hire help for her, but you cannot mess up on the sale of this home.
It must sell for fair market value.
The assets are hers and must be in her name.
The sale must be legally done by her or by her POA.
She can spend on medical care for herself, but must keep meticulous paper trail records.
States vary in their Medicaid rules. It is important, CRUCIAL, not to mess up.
For that reason YOU NEED EXPERT HELP. That means you are on for an hour in an Elder Law Attorney office for options and for how to do this according to the laws of your state.

Good luck.
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The funds from her home sale needs to go into an account with her name on it.

and,

"If you owned and lived in the home for a total of two of the five years before the sale, then up to $250,000 of profit is tax-free (or up to $500,000 if you are married and file a joint return). If your profit exceeds the $250,000 or $500,000 limit, the excess is typically reported as a capital gain on Schedule D."

Tax Aspects of Home Ownership: Selling a Home - TurboTax

So, depending of the profits from selling her home, she may have tax exposure and would need someone to file on her behalf.

Does she have a FPoA?
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There is always going to be a 5 year look back, no getting out of that.

I don't think you need an attorney but, you need to make sure the house is sold for fair market value, an appraisal will verify this amount. Then you need to keep track of all spending from the money.

Medicaid knows people don't live for free. What they are looking for is money being gifted to family so they can collect against the social programs. This will create a penalty period and they won't cover mom during that time, decided by them based on rules and regulations at the time, according to your state.

Best of luck getting all of this together and keeping mom home as long as possible.
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Yes, but you probably should hire a lawyer to set this up for you so its done right and there is no questions from Medicaid down the road.
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