My mother just went into a nursing home with dementia, and will probably not come out (but we dont know that for a fact, since she is not physically disabled, and is relatively young -70) She has a house with about $40,000-50,000 worth of equity in it. the nursing home gave me Medicaid papers to fill out right away, but I dont know if I should fill them out, or if I should try and sell her house and pay the first year or so before applying for Medicaid? If I fill the Meidcaid papers out, what happens to her house? Does Medicaid take it at that point? My mother's income (about $2000) will go to the nursing home, so there will be no additional money to make her housepayments, and upkeep. If the mortgage is defaulted on, and the house goes back to the back - then everyone loses. I am not trying to avoid paying for her care, just want to know the correct way to go about it - Thanks!