Can I Keep My Medicaid if I Sell My House and Put the Proceeds into Trust?
I am on Social Security Disability, Medicare and Medicaid. I want to sell my house in Tennessee, and move back home to Michigan. I also have a Irrevocable Supplemental Security Trust. Can I sell in Tennessee, then rent in Michigan and put the profit from the sale in the trust or do I have to use profits to buy a house so I don’t lose my Medicaid?
It depends on what type of trust of trust you have. If it’s a so-called (d)(4)(A) trust, you can place the proceeds of your house sale into it. When you move, you’ll have to reapply for Medicaid in Michigan, but the trust won’t be an issue. If you don’t have a (d)(4)(A) trust, you can set one up either before you leave Tennessee or after you move to Michigan. Another alternative is a (d)(4)(C) or pooled disability trust managed by a non-profit organization If you go that route, you’ll probably want to wait until you move to Michigan to set up an account so that you’ll be working with a trustee that’s close to you.
For an attorney to help with this, check out members of the Academy of Special Needs Planners at www.specialneedsanswers.com.