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How to Sell Your Home and Keep Medicaid in Ohio

Navigating the sale of your home while ensuring your Medicaid eligibility remains intact in Ohio can be a complex process. Many homeowners’ property is a significant financial asset and a potential factor in their Medicaid benefits. Understanding the implications of selling your home and the strategies to protect your assets and maintain eligibility is crucial. With over 23 years of experience and over 1700 homes sold, I will guide you through key considerations, Ohio’s Medicaid rules, and effective planning tips.

Medicaid coverage protection concept showing a cut-out figure under a blue umbrella with the word 'Medicaid', symbolizing financial safety in Ohio.

Understanding Medicaid Eligibility in Ohio

Medicaid is a state and federally-funded program providing health coverage to eligible individuals and families with limited income. In Ohio, Medicaid eligibility is determined based on income, age, disability status, and other financial criteria. One of the essential considerations for homeowners is how the sale of a property can affect their Medicaid eligibility, particularly regarding asset limits.

Asset Limits and Exemptions

In Ohio, Medicaid considers certain assets when determining eligibility. Generally, your primary residence is exempt from being counted as an asset if you intend to return to it. However, once you decide to sell your home, the sale proceeds can disqualify you from Medicaid if they exceed the asset limit.

Strategies for Managing Proceeds from Home Sales

As a seasoned real estate agent, I’ve assisted numerous clients in managing the proceeds from home sales to maintain Medicaid eligibility. Here are some effective strategies:

  1. Spend Down: Quickly using the proceeds for permissible expenses, such as paying off debt, purchasing another primary residence, or covering medical and living expenses, can reduce your countable assets. It’s important to adhere to Ohio’s Medicaid official guidelines to ensure all actions are compliant.
  2. Asset Protection Trust: Placing the home sale proceeds into an irrevocable trust can also protect assets. The funds in the trust aren’t considered available to you, thus not affecting your Medicaid eligibility. This needs to be executed under the guidance of a qualified attorney to ensure all legal requirements are met.
  3. Selling to a Cash Investor: Sometimes, selling your home quickly to a cash investor can be a practical option. This method can expedite the sale process, potentially minimizing the impact on your Medicaid eligibility by quickly reallocating assets according to Medicaid’s asset management rules.

Real Estate Sales and Medicaid Rules

Understanding the interaction between real estate laws and Medicaid rules is vital when selling your property. Here are some points to consider:

  • Timing of Sale: The sale timing can significantly impact your Medicaid eligibility. If possible, plan the sale when you have significant other expenditures that can be covered using the proceeds.
  • Legal Advice: It’s advisable to seek counsel from an attorney specializing in Medicaid planning and real estate in Ohio. They can provide tailored advice, ensuring that the sale of your home doesn’t jeopardize your Medicaid benefits.
  • Reporting Requirements: Ohio Medicaid requires you to report any changes in your financial situation, including income from a home sale, within a stipulated period. Failure to report can result in penalties or loss of benefits.

Medicaid Planning Tips for Homeowners in Ohio

My extensive experience shows me that early and effective Medicaid planning is essential. Here are some tips:

  • Early Planning: Engage in Medicaid planning before you sell your home. Early planning can offer more options for asset protection and eligibility preservation.
  • Consult Professionals: A Medicaid planner or elder law attorney can provide guidance specific to your situation, helping you avoid common pitfalls associated with selling your property.
  • Understand the Implications: Make sure you understand how the proceeds from the sale will be treated and explore all options to protect your assets, including the potential of working with a cash investor.


Selling your home while on Medicaid in Ohio requires careful planning and consideration of both real estate and Medicaid regulations. By understanding the rules, consulting professionals, and employing strategic asset management, including the option of selling to a cash investor, you can navigate the process successfully without jeopardizing your Medicaid coverage. Always remember that each situation is unique, and personalized advice from qualified professionals is crucial in making informed decisions. Consider contacting Ohio’s Real Estate and Medicaid Advisory Board for further assistance and tailored advice.

FAQ: Selling Your Home and Keeping Medicaid in Ohio

1. What is Medicaid in Ohio?

  • Medicaid is a health coverage program funded by the state and federal government, designed to assist individuals and families with limited income. In Ohio, eligibility is determined based on factors such as income, age, disability status, and other financial criteria.

2. How can selling my home affect my Medicaid eligibility in Ohio?

  • When you sell your home, the proceeds from the sale may potentially count as assets. If these proceeds exceed Medicaid’s asset limits, you could lose your eligibility. Your primary residence is usually exempt from asset counts if you intend to return; however, this changes once you sell it.

3. What are some strategies to manage proceeds from a home sale to maintain Medicaid eligibility?

  • Spend Down: Use proceeds immediately for allowable expenses like debt repayment, buying another primary residence, or medical costs.
  • Asset Protection Trust: Place the proceeds into an irrevocable trust to keep them from counting as personal assets.
  • Selling to a Cash Investor: Consider selling your home quickly to a cash investor to manage assets within Medicaid rules promptly.

4. What should I consider about the timing of selling my home regarding Medicaid?

  • Plan your home sale around times when you can cover significant expenses with the proceeds. This strategic timing helps manage asset limits effectively.

5. Why is it important to seek legal advice when selling my home on Medicaid?

  • Legal experts specializing in Medicaid and real estate can provide tailored advice, ensuring that your home sale does not jeopardize your Medicaid benefits. They help navigate complex regulations and ensure compliance.

6. What reporting requirements does Ohio Medicaid have after selling a home?

  • Ohio Medicaid requires beneficiaries to report any financial changes, including income from home sales, within a specified period. Failure to comply can lead to penalties or loss of benefits.

7. What is the benefit of consulting with a Medicaid planner or elder law attorney?

  • A Medicaid planner or elder law attorney can help create a personalized asset protection plan, advise on legal matters, and ensure that the sale of your home aligns with Ohio’s Medicaid regulations, thus protecting your benefits.

8. Can selling to a cash investor help with Medicaid eligibility?

  • Yes, selling your home to a cash investor can speed up the transaction, allowing you to quickly reallocate assets in a manner that adheres to Medicaid’s guidelines, potentially minimizing the risk to your Medicaid eligibility.

These FAQs are designed to provide quick and clear answers to common questions that arise for Medicaid beneficiaries considering selling their homes in Ohio, reflecting the guidance offered in the article while enhancing reader understanding and accessibility.

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