Hot property sold totally “as is”Medicaid qualification required listing at Tax Assessed Value (TAV)
Medicaid regulations require that a home being sold due to vacancy in a situation where the owner is filing for Medicaid, the home must be listed for sale at no more and no less than the Tax Assessed Value (TAV). When the family showed me the home for the first time, I believed this home would be on the market for 90 days or more. See the photos below to understand my thoughts.
The family did not have the finances to clean up or clean out the home. So it was marketed for sale with all the contents included. I had two estate sale companies evaluate the contents and they could not find any diamonds in the rough or enough value to have an onsite sale.
What I did not expect is that irrespective of the condition, the home attracted a load of attention. The 2019 hot market for homes extended to this neighborhood. The home received ten offers and an offer over TAV was accepted.
A high demand for a home which results in a higher than TAV sale, provides extra cash to the family. However, that can create a Medicaid disqualification if the proceeds are over the state limit. The sale can also create a required payment to a skilled nursing home facility that is including the sale proceeds as part of the estate for cost calculation purposes. The nursing home could take a high percentage of the sale to pay the costs of care.
For these complicated issues, I recommend discussing with a law firm skilled in knowing the in’s and out’s of Medicaid and all aspects of Elder Law. In this case and others I have worked with Evan Farr https://www.farrlawfirm.com/. Evan is a Certified Estate Advisor and a Certified Elder Law Attorney.