Can I use the income from the sale of Mom's house to use for funeral expenses and not jeopardize her Medicaid?
My mother is already in a nursing home and receives Medicaid and Medicare. Can I sell my mother's home to pay off note and place the extra in a savings account to use later for funeral expenses?
Medicaid rules for nursing home coverage do not allow a person receiving benefits to keep much in the way of assets. An unmarried (or widowed) individual usually can keep only about $2,000 in cash or other liquid assets (the exact amount varies slightly from state to state). But Medicaid rules allow additional funds to be used for burial-related purposes. Your mother would be allowed to use funds from the sale of her home to purchase a burial plot, and also to keep up to $1,500 in a separate account to pay for funeral and burial costs.
Go to the funeral home you choose and prearrange the services. Funerals/burials and associated costs can run around $10K these days. A prearrangement is an allowable item when you are in the spend-down process.