Reverse Mortgages

• May 4, 2023 at 8:40 am #31595
  Kristen Carron

  Just want to get another opinion on using a reverse mortgage to get the community spouse more income. Husband is in a nursing home. We are submitting a medicaid application for him. Because wife will lose most of this income, she will be struggling to stay in the home. So we are deeding the house to wife only, and having her take out a reverse mortgage. She will get a monthly payment. Payments will be payable only to wife. I just want to make sure that doing this will not negatively impact husband’s medicaid application. Anyone do this before? I am in RI if that makes a difference.

  Thanks,
  Kristen

  May 5, 2023 at 9:58 am #31598
  Collin Terry

  Typically, income solely in the name of the community spouse does not impact eligibility or patient pay liability for the institutionalized spouse. You may be able to refer to 42 U.S.C. 1396r-5 for support of this concept. Additionally, 210-50-00 R.I. Code R. § 6.4 also speaks to spouse to spouse deeming of income. I hope this information helps.