House sold during the application process

[PamRN]

Application for A&A was sent in for my MIL several months ago.  Her house was up for sale when the application was sent in.  Last week her house finally sold.  Her total assets,even with the sale of the house, are below $55000.   

How will this now affect her being accepted for A&A?  Should we be reporting the sale of the house at this time? Does this totally change the picture?   She is currently living in a Personal Care Home.

Thanks for your help.

[VSR]

The sale of a home is considered a conversion of assets, so this likely will not have an impact her eligibility.  If her net worth is still low enough and she does not receive interest on the sale of the property, this shouldn't make a difference.

[PMC-Chris]

Are we allowed to tell them that $80,000.00 is more or less the cut-off point for benefits?  If total assets are over that VA will ask her to fill out a VA Form 21-8049 to report her expenses and to make a "special determination" on her eligibility. 

If her interest income is expected to change (VA likes to assume she will receive 3% on her interest-bearing accounts), it would be best to report that.  Although if she's paying several thousand each month for care in a nursing home or assisted living facility her interest income of a few hundred dollars shouldn't affect anything!

[jpez]

(VA likes to assume she will receive 3% on her interest-bearing accounts),

Why would the va assume a 3% rate?

Maybe I'm confused. But this program is for seniors who are spending all of their income on CARE. They are down to their last $50-80k and their are supposed to be earning 3%? In this economy?
I just checked 1 yr cd rates and the best in the nation is 1.56% and that's a bank in Delaware.

[VSR]

(VA likes to assume she will receive 3% on her interest-bearing accounts),

Why would the va assume a 3% rate?

Maybe I'm confused. But this program is for seniors who are spending all of their income on CARE. They are down to their last $50-80k and their are supposed to be earning 3%? In this economy?
I just checked 1 yr cd rates and the best in the nation is 1.56% and that's a bank in Delaware.

Preachin' to the choir on this one.  The ridiculous part is that most people will list the balance in their checking accounts in the "interest bearing accounts" question on the application.  I'm sure they are probably getting $0.01%, but since they did not list any interest income, VA is required to go back and request clarification of interest income.