Legal Question in Elder Law in Maryland

My mother has just been placed into long term care at a nursing home. She has Medicaide but they are insisting that we sell her house. Her name is solely on the deed. The house appraised for $215,000. My niece wants to buy it for $140,000. My question is can I sell the house for less than the appraised value or do I have to aell it close to the appraised amount ? If I did sell it for less cant he state come back on me (daughter with power of attorney) and make me pay the difference ? The nursing home is costing me $3000 a month and Medicaide won't pay until the house is sold ... So how much can I sell the house for ??


Asked on 9/28/15, 4:04 am

1 Answer from Attorneys
Cedulie Laumann Arden Law Firm, LLC

I encourage you to seek the advice of a knowledgeable estate planning / disability law attorney. In proper circumstances a house may not count as a person's "asset" for purposes of qualifying for governmental benefits. Put another way, although someone must use their own money first before getting government assistance based on need (Medicaid) if there is a desire to move back to the home at some point the house may not need to be sold.

Secondarily, if the house is sold regardless it will need to be "fair market value" -- this is not necessarily exactly the same as the appraised value but if the house is sold to a relative for less than the market value then it will be seen as a a partial gift and the difference between the value and sale price may be counted as an asset.

While I hope this general information helps, it does not take the place of meeting with an attorney to go over the specifics of your situation.

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Answered on 1/30/16, 8:41 am


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