Texas has MERP. My family & I and my mom live in her home, can I sell her home & use the proceeds to purchase a larger home.

MERP concerns the state's recovery from a probate estate what was expended to cover the medical and care needs applied for and received by an individual on or after March 1, 2005. In the case you have explained, however, you are seeking guidance on the eligibility rules for a person who is alive and applied for and receiving Medicaid benefits. When discussing Medicaid planning, it is critically important to have a full consultation with an elder law attorney who will look at the full picture of benefits, needs of your loved one, Medicaid regulations, and the legal authority required. Medicaid does permit the sale and purchase of another home under certain conditions but to maintain eligibility and to determine whether you have legal authority, an elder law attorney can give you guidance through the process.

MERP relates to what actions the state is required to take to recover Medicaid benefits once the recipient of benefits dies. In the federal legislation that requires MERP programs in each state, Congress gave the states the choice of having all of the decedent's assets subject to MERP or only those that pass through probate. Texas chose to have MERP claims only apply to probate assets. That means that if your mother were to execute a Transfer on Death Deed (authorized by the 2015 Texas Legislature) that transferred the home to you upon her death, it would not be subject to a MERP claim. She could also use what we call a Lady Bird Deed, but the new Transfer on Death Deeds are legally simpler and would be equally effective in shielding that asset from a MERP claim. Your question about how selling the house would impact her Medicaid eligibility is beyond me. I don't think it's a hard question, I just don't know the answer.

Waste no time in finding an elder law attorney to help you. Medicaid rules are complex and very not only from state to state, but even county to county. But Medicaid is only one part of the picture. There are many tax issues as well. This is not a simple area of law you can do as a do it yourself project. Search or NAELA to find one near you.

If your Mother is already receiving Medicaid benefits, selling her home could have an adverse effect on her Medicaid benefits. The value of her homestead does not disqualify her from Medicaid. However, if the home is in her name and is sold, then the proceeds would be hers. Medicaid limits the amount of assets, outside the homestead, one can have and receive benefits. Medicaid looks back 60 months to determine if the applicant has had assets over the minimum, transferring the home by Ladybird Deed could mean she can not apply for Medicaid benefits for 60 months from that date. Additionally, while Texas has now authorized the use of a Transfer on Death Deed, there is no guarantee a title company or lender will accept this instrument. Before you move forward, you should seek an Elder Law attorney in your area.