net worth and selling house

[pcrcd]

My dad needs to sell his house to help pay for his assisted living expenses.  He is getting an A&A benefit of $1677 every month.  Up to now I have payed $1500 per month to help  my dad pay for his assisted living expense, his total monthly bill is approximately $4500.  When he sells his house can he repay me with some of the proceeds from the sale to help keep his net worth lower?  If so, how would I go about reporting this on the EVR?  His house is worth about $60,000 and he is 92 years old. 

[vetadmin]

You need to find an Elder Law Attorney who is well versed in this pension to really help you on this.  Your dad will have to claim the proceeds from the sale of the home, but you need assistance as to how structure the repayment so that everything is above board.

Check the Elder Law Directory on the site to see if anyone is in or near your area.

[swainlaw]

Unless your mother is still alive he would only be getting $1644 per month.  If she is still alive he is not getting the full benefit and you need to increase his medical expenses.

My advise will depend on your Dad is being competent.  My recommendation is based on the VA poension benefit.  I cannot advise you as to how your state Medicaid will treat the transaction.

If he is competent you need to enter into a loan agreement that states your prior verbal agreement to repay you for any payments you have made on his behalf  and all futuire payments.  When you sell the house you should provide this loan agreement to the closing attorney so you can be paid out of the proceeds of the house at closing.  You will have to report the sale to the VA and give them a copy of teh HUD statement showing what he netted from the sale.  If you note is paid first he will only have to report what he receives.

I would advise you to have an attorney that specializes in Medicaid work with you to make sure the loan will not cause him to be disqualified for Medicaid.