Rules for Medicare, selling your home, obtaining new housing without losing Medicare.

[Victoria Redlin]

Scenario:

My client has a home and is a Medicare recipient. He has to sell his home because he can no longer afford the upkeep or live alone. He still needs Medicare and still needs somewhere to live. Can he sell his home and use the proceeds to build either a Grandparent flat or ADU or addition at his child's house? He heard there is a limit on spending the proceeds, restricted to $25,000./year. It will probably cost him more than that to create the initial downsized housing. It could easily cost as much as his proceeds, but if he can only spend $25k/yr. He'll need to live in an unfinished property for awhile. What are the guidelines for Medicare recipients selling and buying primary housing?