My Home Value Increased. Can I Still Qualify for Medicaid?

We have seen many clients selling houses within certain areas of New York who have benefited from increased real estate growth and value. In such areas, when the asset gains value, or the neighborhood has developed, many owners decide to downsize — perhaps moving to the suburbs, a condo, or a co-op. The most common questions we are asked include: 

•With property values going up, will we ever qualify if we need Medicaid? 

•How can we protect our assets?

•What actions do we need to take? 

Clients are also curious about whether or not they can buy another house and preserve their so-called “surplus money,” otherwise known as the equity they’re pulling out of their original home. The answer is: Yes, depending on how aggressive they want to be in either asset protection or Medicaid planning. Options exist, such as different types of trusts, life estates, and gifting. However, these options depend on the family dynamic at play. 

There is a misconception that occurs among clients that if they have significant assets, they won’t qualify for Medicaid in the future — and as a result, they “spend down” their money until almost nothing is left. In reality, the decision comes down to the family dynamic and how much of their money they want to preserve. 

If you have questions regarding the sale of your home, please don’t hesitate to contact us today.

Michael J. Fedele, Esq.
SCHNEIDER, GARRASTEGUI & FEDELE PLLC
135 Pinelawn Road
Suite 110 South
Melville, NY 11747
(P) 631-756-6006