Tag Archives: MEDICAID

Can I sell my mother’s car as her POA?

Q: My mother Is in a nursing home and will no longer be able to drive her car. I want to sell her car. Can I do this with just the POA and go to a Notary Public?

A: If it is a legal Power of Attorney, in that it complies with the requirements of state law, and, it authorizes you to sell or transfer her property, you can do it. There are other factors to consider such as Medicaid. If she should need to apply for Medicaid in the next five years, the transfer of any personal or real property without consideration (i.e., gift, under market value) could disqualify her for benefits to the extent of the value of the transfer. If you sell the car, keep records of the transfer and put the money in your mother’s bank account and only use if for her expenses. First and foremost, consult with an attorney, especially if Medicaid may be in the future.

Do I need to probate my mom’s estate?

Q: My mom passed away two years ago. She lived with me and I paid all her bills. I paid $13,000 for her funeral expenses. Recently, I received refunds from the hospital for approx. $2000 in checks for copays when my mom was paying. I helped her pay them. I didn’t probate the estate because I was told it’s insolvent and there wasn’t any need to do so. Now I have these checks made out to her name. What do I do? The $600 in her bank account was split between myself and my brother. The credit cards are still unpaid, but they were told her estate is insolvent. Where do I go from here? (Pittsburgh, PA)

A: To answer your question I would need more information on the extent and type of assets and debts. The Estate Recovery program managed by the PA Department of Human Services can seek recovery of monies paid out to a Medicaid recipient, from their estate. If there no estate opened, it is doubtful if they will pursue recovery. However, they can go after other monies held in your mother’s name with others. You may want to consult with an attorney to determine if it is worth opening an estate. From what you describe, it may not be. You have no duty or obligation to open an estate.

My mother’s will was never notarized. How do I handle her estate?

Q: I have the original will with signatures, however, it is not notarized. The will has 2 executors who have not started any legal proceedings to settle my mother’s estate due to them not wanting the responsibility. The estate includes a house and an Allstate insurance claim. The will states that my mother’s four children and her boyfriend (executor #1) are to be willed her house, belongings and any monies left. Two of my siblings (over 18) still reside in my mother’s home. I pay the property taxes as there is no mortgage and they pay the utilities. The Allstate claim is from an accident settlement my mother received for a car accident that turned her quadriplegic. We believe this Allstate claim is to pay back Medicare since the settlement monies were put in a trust for her medical expenses. To our understanding, once Medicare is paid, whatever monies left over will be split amongst all parties listed in the will. To our knowledge it is over $400,000 that Allstate must disburse. Us four siblings have no clue how to move forward with getting her estate settled and being legally put on the deed to her house. (Pittsburgh, PA)

A:  It sounds doable. A will is not required to be notarized to be legal and admitted to probate. As stated, if she signed at the end of the document and two witnesses have signed below her, it should be admitted. If the boyfriend does not want to be executor, he can renounce, and the testate heirs (in the will) can choose another person to serve if they all agree. Are you sure it is Medicare and not Medicaid? My thought is that it is Medicaid who has a lien, and they will be need notified of the estate and settled with. I think the more complicated issue may be dealing with the two siblings who live in the house. Nothing here is that unusual that an estate attorney cannot help you with so you need to make an appointment.

Can Medicaid take my profit if I sell my townhouse?

Q: I want to move into a low-income apartment. Will I lose my Medicaid? Because I made a profit on the sale of my townhouse? I owe my cousin money and she will get my profit money. (Monroeville, PA)

A: I am sure if you applied for and are receiving Medicaid funding they already know about this townhouse, assuming it is in your name and you didn’t falsify your application. They may already have a lien on this house. There are too many questions here, to give you a competent answer. Like, is the townhouse in your name? Are the proceeds going into a trust of some sort? When was the trust established? Please consult with an attorney versed in Medicaid regulations.

How many years does Medicaid go back for recovery of benefits paid?

Q: Elderly mother has been in nursing home for 2 years. She has used ALL her life savings to pay for it and is now out of money. She receives Medicare but not Medicaid, yet. She owns a very small home that was her marital home (husband is now deceased). She did own family farm that included old family home and acreage but transferred that to her children in 2016. If she applies for Medicaid, can they seize the family farm property to recover benefits paid for nursing home? (Delmont, PA)

A: The Department of Human Services of PA examines all transfers of property done for no consideration or for less than market value by an applicant in the 5-year period preceding the application. If the transfer of the farm to family was a gift, this could subject her to a penalty and consequently delay her ability to receive Medicaid. This are of law is very complicated. You should seek an opinion from an attorney who is versed in Medicaid regulations. He or she will need to know more facts than you have given us here to properly assess your situation.

Medicaid Estate Reimbursement

Q: My mother died at 66 years of age without a Will. We were not going to open an estate because there were no assets. However, I found out my mother was the beneficiary of my grandmother’s insurance policy valued at $22,800. This was turned over to PA Department of Treasury, unclaimed property. For us four children to claim this life insurance, we must open an estate. However, in reading small estate law in PA, Medicaid needs to be put on notice if she received it. None of us knew of my mother’s personal affairs as all of us were estranged from her so it is possible she received Medicaid. We are unsure if it is worth trying to collect money from my grandmother’s life insurance that my mother was the beneficiary. Without the policy, my mother died without assets. Is there any advice you can give on what we should do in this situation? (Pittsburgh, PA)

A: Whether you proceed under the Small Estate Petition statute, or file for a grant of Letters of Administration, the Department of Human Services of PA must be notified. They will respond as to whether the decedent received Medicaid and if so the amounts they seek to recover under Estate Recovery. Under the PA Code, section 258.3 (Estate Recovery), life insurance proceeds payable to a decedent’s estate are subject to the Department’s claim. Life insurance proceeds payable to a beneficiary are not subject to the Department’s claim. The problem here is that this policy was not owned by your mother. She was a beneficiary of the policy who did not claim her proceeds for whatever reason. The proceeds turned in to cash after grandmother’s death. Had it been your mother’s policy, and there was a named and living beneficiary, I think you would be in the clear. The other concern is that since the proceeds have devolved to unclaimed property and lose their identity as insurance proceeds, they are viewed as cash. I would not throw in the towel at this point. I do not know the definitive answer on this without doing some research. You may want to consult with an estate attorney to see if it is worth pursuing. If an estate is opened and Estate Recovery files a claim for the entire amount, the estate can pay preferred estate expenses before paying Estate Recovery. These would be reimbursing family members for funeral expenses advanced, filing fees, attorney fees and an executor fee. It may be worth it. The attorney and the executor will earn a humble fee but perhaps someone who had no hope of being reimbursed for the funeral, which can be expensive, can now be paid.

How do I transfer assets to an elder parent if I die first?

Q: I am an adult only-child (age 42), and my retired mother (age 68) has no blood relatives other than me. If I were to pass before her, I want her to be protected financially. I currently have her as the sole beneficiary to one of my life insurance policies and one of my investment accounts. My husband is the beneficiary of all other insurance policies and financial assets. For estate planning purposes, what is a good vehicle to consider, for securing that the assets that are designated for my mother provide not only a secure income but also cover basic needs that may arise (ex: home, medical care, long term care, transportation)? (Cranberry Township, PA)

A: A complicated question which cannot be answered without much more information including your mother’s health, the value and structure of her assets, her income, your health, your husband’s health and the value and structure of your assets, etc. It would generally be inadvisable to leave these assets directly to her via the testate process or non-probate succession given her age, especially if she has health issues. The consequences could result in ineligibility for Medicaid and VA benefits, if applicable. A revocable living trust with beneficiary designations aligned with the planning is generally advisable. Again, seek a consultation with an attorney.

Will I lose my house?

Q: We built an in-law apartment onto our home with proceeds from the sale of their home. If they need to be moved into a nursing home before five (5) years have passed, will they or us need to come up with the full amount of money generated from the sale of their house, necessitating the sale of our home to recoup the $53,000 spent on their apartment, before Medicaid will pay the rest of the expenses? Or does Medicaid accept/require the remaining monies only? (Pittsburgh, PA)

A: You need to consult with an attorney who is versed in Medicaid regulations. Generally, the idea is that any transfer of wealth, without fair consideration (like gifts) within five years of the Medicaid application, can render the Medicaid applicant ineligible for Medicaid funding to the extent of the value of the transfer. It is not the nursing home that triggers the 5-year look back but the Medicaid application. If you are saying that they liquidated their home, to pay for an addition to your home so they can live in it under your care, I am not sure the entire value of the addition is a gift as they are receiving consideration in the form of housing and care. An attorney can also advise you on a caretaker contract which may help you shelter some of the in-law’s estate.

Can we lose our home?

 

Q: My spouse and I have lived on family land that is owned by my parents for 26 plus years. We pay our own property tax however it is on family land that has never been deeded over to us. We were told 26 years ago that the land would be divided between us siblings. My family is the only one who lives on the land. My dad is now disabled and uses a walker and my mom is not able to take care of him and is in very bad health. He is looking at going into the nursing home. We are worried about what will happen to us since we live on the land that isn’t deeded to us. Do we have any rights after living here for so long? (Pittsburgh, PA)

A: The only way for you and your husband to get ownership of this property is to have your parents deed it to you now, or pass it to you through their wills. With either method, they need to be competent to do so. If they are presently competent, they should do this now before their health declines, if it is what they want to do. However, this decision must be made with full knowledge of Medicaid implications. If either parent should need to apply for Medicaid funding all transfers of property within the preceding five years are scrutinized. If property is gifted or sold for less than market value (gifts to family) it could subject them to a Medicaid penalty. Therefore, only do this type of estate planning under the advice of an attorney versed in Medicaid regulations.

Do you we need to cash life insurance policies for Medicaid?

Q: My daughter is beneficiary of a life insurance policy. The owner just went to a nursing home on hospice. The Executor wants to cash in the policy for the cash value for Medicaid. The owner of the policy is of sound mind. What are our rights? (Pittsburgh, PA)

A: The owner of the policy can do as he or she wishes. It is not the decision of the Executor. The Executor is appointed in the will and only has legal authority after the owner dies. If this person is Agent on a valid Power of Attorney signed by the owner, he or she may have authority to do this if the language of the POA allows it. However, if the owner is competent to make this decision, the Agent must abide by the owner’s wishes and cannot act to the contrary. Perhaps the Executor thinks the owner needs to liquidate this policy in order to spend down for Medicaid? Under section 258.3 of the PA Code, life insurance policy proceeds payable to a living beneficiary are not subject to the claim of the PA Department of Human Services, who manages the Medicaid program in PA. My thought is that if this “Executor” person is trying to do Medicaid planning without the assistance of a lawyer, he or she is taking a risk. Advise this person to seek legal help from an attorney versed in Medicaid regulation.