How Do Reverse Mortgage Proceeds Affect Medicaid Qualification?

Everything I own, except my house, is in an irrevocable trust and here, in Maine, a Medicaid recipient is limited to $10,000 in cash. How are the proceeds from a subsequent reverse mortgage, which would far exceed the cash limitation, calculated?

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Dec 08, 2013
Reverse Mortgage and Medicaid Eligibility
by: K. Gabriel Heiser

If you have a reverse mortgage in place, only the actual amount paid out to you counts as as available asset (and therefore counts toward your Medicaid limit) beginning the month following the month of receipt of the cash. It does not count as income for Medicaid eligibility purposes.

I discuss several planning ideas using reverse mortgages in a very detailed section of my book "How to Protect Your Family's Assets From Devastating Nursing Home Costs: Medicaid Secrets." (

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