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Sister has power of attorney. Home value is $97,000.00 in Kentucky. Mother has been in a nursing home since Jan 5th, 2022. She's 92 years old and will not come out of the nursing home. Sister and mom have agreed to sell the house so she can have money to continue self-pay in the nursing home. What paperwork do I need to have so when she does go on Medicaid it will not delay the process?

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If Mom is now in on private pay, and you buy the home, she will continue to be private pay. Mom's assets are meant for her care. After she spends the money from the sale of the home she can apply for governmental assistance of medicaid.
Your Mom does not NEED to sell the home now. If this was Mom's only home, her primary residence, she can keep the home. The home will stand to pay her medicaid debts after her death, however, so in any sale of it a lot of the money will go to medicaid clawback.
You should attend an Elder Law Attorney with your Sister to see what your LEGAL options are for your State. This is not something to ask a Forum of strangers. This is something to get EXPERT advice on.
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Debstarr53 Mar 2022
I love that: Medicaid clawback. Thanks for the laugh.
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The appraisal will prove it was purchased at FMV.
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your mom technically as the property owner should be the one who orders and pays for the appraisal. Not you. You don’t want it to be you as it looks like self dealing. Appraiser should have a state license and place a seal on the report.

If appraisal comes in less than the current tax assessor placed value, that appraisal establishes why it’s less. It’s a legal document. So if Medicaid should actually need to be filed for in the future as mom has run out of $, and there is any question why it sold for less, the appraisal establishes why.

if you wanted to go a step further in all this, your mom could get the house inspected first and then that inspection report is given to the appraiser to use as a reference in their report. If house has lots of delayed maintenance &/or the majors (roof, electrical, plumbing) are old / vintagey, you might really want to get it inspected first. Inspector will go in detail on how beyond code the situation is. Will lower its value a lot. Best of luck in your quest!
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Lymie61 Mar 2022
While the seller might have an appraisal to figure out what to list it for I don’t think that’s typical. The buyer is usually the one who gets an appraisal before purchase and if it’s financed I think they have to. The buyer usually gets the inspection too before closing and usually the sales agreement is contingent on these two being acceptable. If the buyer is paying cash I think the only thing they have to have done is a title search but it’s risky not to have the other two done. I agree 100% that the appraisal is very important in this case either way for possible Medicaid look back and some of this might be different state to state too I suppose.
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You may want to discuss this with an attorney in her state who specializes in elder law.
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Having just finished the Medicaid approval process for my mom that had a similar situation I can tell you that in our case the closing papers and appraisal proof that my brother purchased the home at appraised value satisfied everyone. Each state can be a little different though and you might consider using an attorney who either has experience with estates and Medicaid, a practice that has attorneys with each specialty so they can advise one another for the purchase/closing and or call the Medicaid application department in your mom’s state and speak to a case worker, they should be willing and able to answer your question even though your simply preparing for the possibility Mom might need to put an application in once the funds from the sale run out.
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Call a reputable realtor in the area and ask for recent sales and listings for the area. Determine the average square footage price. Multiply that by the square footage of moms house and compare to appraisal price. It should be very similar. Keep a record of addresses and listing/sales price with your documents. She should be thoroughly covered with all this data. Some houses sell higher than appraisal especially these days with soaring sales prices and cash buyers.
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I'd suggest being referred to a good Elder Care attorney to advise and assist you through the process. It's worth it.
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Call an elder lawyer. It WILL affect Medicaid
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Dahorn, the advice that Connie, who answered below, is specific to a situation where there is a "Community Spouse" involved.

Please consult an eldercare attorney about your mother's specific situation in HER state.
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Yes! Elder Law Attorney. I just spoke to one about selling my home to be prepared for self pay and was promptly told, "No, no, no..........you're sitting on your nest egg and Medicaid will NOT even discuss the value of your home because it is not a factor in what they insist must be spent before they will start paying."

That is the way the system works, so you must allow your loved one to be financially dependent so that Medicaid will get approved and you will not have to sacrifice your home. I will make another appointment to see if we could refinance for some cash and avoid selling the nest egg until AFTER Medicaid gets approved.
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BarbBrooklyn Mar 2022
Connie, the situation is VERY different if there is a spouse (you) involved.
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