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I would get professional advice. It may be wise NOT to sell the home at present. Medicaid can be accepted; after death of the elderly person the house, when sold, will go to repay funds spent on the elderly person. There may be money left over after sale of the home, and there may not. But selling it now would preclude any acceptance of/application for medicaid I do believe, and these assets from the home would have to be "spent down", and carefully so as to avoid gifting problems and so on. Not a simple subject, so see an elder law person, or speak with someone directly in medicaid offices.
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Depends on what state you are in, whether there is a spouse and on if you are applying for Community Medicaid or Chronic Medicaid. The best thing to do would be ask a lawyer. Most of them answer questions for free. Or call the local Medicaid office. I found them very helpful. Good luck.
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If she doesn’t have a spouse then she can have $2,000 in assets in the state of Pennsylvania. $4000 if she has a spouse that isn’t applying for Medicaid. You don’t need a lawyer either, all of this information is available online in layman’s terms.
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Alicew234 Feb 2020
It really is a complex issue. Professional guidance is extremely helpful.

For example, you need to know the rules for spending down to $2000 or $4000 in assets. What can you spend the money on? What assets are protected (ie. don't count)? Is a 401k/IRA considered an asset or a source of income? Does it need to be spent down or can it be saved? Can you sell your house and buy a smaller one? Can you renovate the kitchen? Can you buy a new car?

I did not find the information available in clear terms. I think asking a lawyer or the Medicaid office is a much better idea.
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