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  • A Reverse Mortgage can impact qualifying for Medicaid (Medical in California) and the amount of benefits received. When somebody initially signs up for Medicaid, there's a 5 year look back period, whereas they're going to want to see all your assets and what you've done with them. If, during that 5 year period, you did a Reverse Mortgage and received a lot of cash in the form of a lump sum, you could be impacted negatively. However, if you received your cash in the form of a Credit Line, or Monthly Check, a Reverse can can have little or no impact.

    If anybody is potentially considering Medicaid, and a Reverse Mortgage, it's really really important to work with an Estate Planning Attorney that understands Medicaid and Reverse Mortgages. The Attorney will be able to explain how to structure the Reverse Mortgage so Medicare benefits aren't impacted - it'll be well worth your time and money.

    On the side, for reference, Medicare and Social Security benefits aren't impacted by a Reverse Mortgage, nor are they taxable.

  • Login to rate this answer:   Answered on 3/8/2013
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.