Legal Question in Elder Law in Washington

Medicaid

My mother is receiving Medicaid and is legally incapacitated. I have Power of Attorney. I must sell her home because we can not afford to financially support it. My question is; upon the sale of the home, can I pay off her debts? ie, credit cards and Furneral Home Agreement Contract? Then report the remaining income to Medicaid.


Asked on 12/04/06, 4:44 pm

1 Answer from Attorneys

Bruce Busch Bruce R. Busch, Attorney at Law

Re: Medicaid

The home is an exempt resource. My advice is to speak with an elder law attorney PRIOR to selling the house. You may not understand all of the ramifications. As far as the priority of debt, medicaid probably has a lien on the home for what it has paid out already. All secured creditors would be paid first, followed by unsecured creditors such as credit card companies. You also might find that you can call the credit card companies and inform them of your mother's financial position. You just might find that they are will to receive 75 to 50 cents on the dollar, which would save your mother's estate some money.

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Answered on 12/05/06, 11:09 am


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