Real Estate Expenses As Part Of The Spenddown

Real Estate Expenses As Part Of The Spenddown

In Post 11, the basic rule that real estate owned by a married couple is an excludable resource.

At various points in the posts presented, we have indicated that reasonable expenses relating to the home can also be treated as part of the spenddown.

However, Medicaid insists that any monies expended on the home be needed and that verification be provided.

For example, in reviewing my files I noticed a case with extraordinary home improvement expenses, which were necessary and allowed as part of the spenddown by the County Board. The expenses allowed and the verification provided were as follows:

1. $12,500 air conditioner (doctor’s letter about wife’s breathing problems).

2. $ 4,900 boiler (letter provided indicating deterioration of current boiler and necessity for a new boiler).

3. $13,000 landscaping and drainage (pictures submitted of flooded property).

4. $ 2,900 electrical upgrade (letter provided and pictures shown regarding condition of current electrical setup).

5. $ 2,007 replacing shed damage (pictures shown).

Although Post 53 stresses that allowable expenditures are limited by the concept of reasonableness, verification of an extraordinary amount of home expenditures was allowed in this particular case.

The point of this example is to show that necessity is the test for expenditures and that verification can often justify unanticipated expenditures.

Disclaimer: This article does not constitute legal advice and each person may have unique facts for which legal consultation may be necessary.

© May 2009, Post 83