Medicaid Policy                                                                 

531-3 Sales Contract Lump Sum

Effective Date: October 1, 2018

 

Previous Policy

 

 All Sales Contract Lump Sum

 

Only count the portion of the proceeds not used towards the purchase of an excluded home or exempt asset.

An individual may refute the market value of an asset by providing verification from a knowledgeable source, such as a financial institution.

 

 Lump Sum on Excluded Home

Payments are exempt as an asset as long as the individual plans to use the proceeds to buy another excluded home (521-1) AND the purchase of the home is completed within 3 calendar months of receiving the payment.

Payments from the sale of an excluded home are countable as an asset the month received if:

The individual does not intend to use the proceeds to buy another excluded home;

The proceeds are not used to purchase another excluded home within the 3 calendar months; or

The proceeds are used for a purpose other than buying an excluded or exempt asset.

If needed, a DHHS Policy Specialist (Table IX) can grant an extension to the 3 calendar months.

Include in your email the member name, case number and required verifications.

The member will have to verify they have the proceeds and are still actively looking for a home.

Verification can include, but is not limited to bank statements, statements from a title company or realtor.

 Lump Sum Not on an Excluded Home

Payments are countable unless the proceeds are used towards the purchase of an excluded or exempt asset.

The proceeds are a countable asset the month after being received.

See 415-7 to determine if interest received is countable as income.