Tag Archives: MEDICAID

Aunt in nursing home, but owns a home

Q: My Aunt is in a nursing home in Westmoreland County. She still owns her home in Allegheny County but will not be able to return there to live. Can we keep aside some of her money to pay for yearly taxes and homeowners insurance? If so, how many years can we keep back? (Churchill, PA)

A: If she has enough money to pay for the home and at the same time afford nursing care, she can keep the home. I think your concern is whether this home can be maintained if your aunt should run out of money to pay for nursing care and need to apply for Medicaid to continue in her nursing home setting. Generally, there are planning tactics to avoid Medicaid recovery against the home but doing this at the last moment and not years before is basically too late. If she will need to apply for Medicaid because she has insufficient funds to afford nursing care, the home will need to be sold. However, you should only do so under advice of an elder law attorney versed in Medicaid to determine how the proceeds should be spent down to save as much money as possible for your aunt. Without knowing more, I can offer this. If you want to preserve the home, and she can afford it, do so. Whatever you do, do not have her transfer it to family or friend as a gift as this will render her ineligible for Medicaid. If she must sell the home, sell if for fair market value and keep records of everything.

Can I hide money from Medicaid?

Q: Can I legally hide money to be approved for Medicaid by paying off my adult children’s credit card bill directly to the credit card company? Even if I never transferred money to my adult children’s bank account.

A: Your bank statements will be scrutinized in the Medicaid eligibility process and such a payment would be considered to be a gift or a transfer of money to benefit another person with no consideration received in exchange. It could and likely will render you ineligible for Medicaid benefits to the extent of the dollar value of the transfer. I would consult with an elder law attorney to determine what monies you can shield from Medicaid.

Will paying family members for nursing care trigger a Medicaid transfer penalty?

Q: Grandmother was paying $14k/month to private homecare agency so I (grandson) moved in to take over her care before she ran out of savings. She has paid me $2,400/month for the same care, and I have reported the money on my taxes as income. She now needs to go to a nursing home, but will only be able to pay out of pocket for a few months. Over the 18 months I’ve cared for her, she has paid me a total of about $40k. I know that if she had just been giving me her money, we would not be eligible for Medicaid due to the transfer penalty. Is the transfer penalty still a risk given that she was paying me for a service that would have otherwise cost her much more? (Pittsburgh, PA)

A: Very possibly. Be careful. Caretaker payments to family members without proper documentation and receipts can raise red flags with Medicaid and yes can in fact be viewed as a transfer without consideration within five years of Medicaid eligibility. The fact that you reported the income on your tax return is important. You would be safer if you have a caretaker contract signed by grandmother in place that is the type of document approved by Medicaid. You should consult with an elder law or estate attorney before you do anything .

Can I keep nursing home from taking all of my mother’s property?

Q: How does my mother make arrangements to keep a nursing home from taking her property in future? She is in a nursing home at present but will be paying on her own after 1/25/14. I would like to take her home with me to see if she improves but her mental capacities are rapidly fading. (Munhall, PA)

A: You have several issues here. One is your ability to care for her at home. The other is potential funding issues if she should deplete her savings and neither she nor you can afford the level of care she needs. This is a Medicaid issue. Consult with an elder law attorney or estate attorney before you do anything. I assume you are concerned about Medicaid. There is a 5 year look back from Medicaid on all transfers without consideration. Some transfers are allowable, others are not and could result in her being ineligible for Medicaid. You do not want to start gifting property to family or changing title to property unless advised by a lawyer.

 

Can I set up a trust for my mentally handicapped sister?

Q: Can I set up a trust or something similar for my mentally challenged sister? She currently receives state insurance and cannot have more than $2000 in her bank account. Otherwise, she will lose her health benefits if she has more than that. Do you know the best way to put money away for her that won’t interfere with these benefits?

A: It sounds like she received Medicaid benefits? There are two types of special needs trusts (SNT) which can be used to maintain eligibility for Medicaid while improving a disabled person’s quality of life. They are categorized as first-party and third-party. A first-party SNT can only contain assets belonging to the disabled individual and falls into two categories; the d4A self-settled trust and the d4C pooled trust. A d4A SNT can be established by a parent, grandparent, guardian, or court. An account in a d4C pooled trust can be opened by a parent, grandparent, guardian, court, or the disabled individual. If you are thinking of establishing a SNT using your own money or someone other than your sister’s money, you will be doing the SNT. This is a very complicated area of the law and you will need the help of an experienced elder law attorney who does special needs trusts. You can locate one by going to the website of the National Academy of Elder Law Attorneys or the PA Association of Elder Law Attorneys. Be sure to ask any attorney if he or she uses SNT’s.

My name is on the title to mom’s car, what legal rights do I have?

Q: My mother has recently been diagnosed with Alzheimer’s disease and a nursing facility is a possibility. Her name as well as mine is on the title to her car. What legal rights do I have to the car at this point?

A:  It depends on the exact wording on the title. It sounds like you may possibly be joint owners but the title would have to be examined to confirm this. If there is a lien on the car from a bank or finance company, the loan would need to be paid before the car could be transferred to another owner. If there is an underlying concern here that your mother may need to apply for Medicaid, given her condition, you should consult with an elder law attorney regarding all of her assets and not just the car. She may face a Medicaid penalty for a transfer of any asset of hers within five years of applying for Medicaid. If your mother is still competent to sign legal documents and there is no lien on the car, she can sign the titled over to you. You should have her consult with an elder law attorney.

Can a 7K gift to my sister exclude my mother from receiving Medicaid?

Q: Hi. Looking for assistance on the Medicaid look-back period, details below. My mom “loaned” my sister $7000.00 3 years ago. My sister said she would pay her back but who knows if she will. I know Medicaid looks back 5 years. If her money runs out, what will happen if my sister hasn’t repaid the money? They will throw her out on the street? If my sister can repay the money (or if I can and choose to do that for her), is there a specific way I have to do so? The money was just removed from my mom’s account at the bank and handed to my sister. Could I just deposit the same amount and it is ok that there is no proof where it came from? And is it 5 years from the day Medicaid would pay or 5 years from the date I am filling out the application? Can I not even apply for Medicaid till the money is repaid? (Bridgeville, PA)

A: Do not even attempt to handle this without the advice of an experienced elder law or estate attorney who understands Medicaid. You are playing with fire. It may be possible to address the “loan” even if it’s not repaid and still avoid a penalty period should your mother need to apply for Medicaid. However, that depends on many factors that are best addressed in person with an experienced elder law attorney. Generally, a gift like this can potentially exclude your mother from receiving an amount of Medicaid funding equal to the amount of the disqualifying gift. Again, seek an opinion.

 

Applying to Medicaid. Do we need to mention gifts from 2-3 years ago?

Q: Our mother is going into a nursing home and application asks for any transfers. Do we need to declare gifts from 2-3 yrs ago? She has resources for approximately one month in a Nursing home and afterwards I believe Medicaid would take over.

A: Yes, when applying for Medicaid eligibility, you need to list all transfers of any property for no consideration (gifts or under market value) in which mom had an interest for the past 5 years. Any transfers without consideration, or which the consideration (money received for sale) for her property which has not been documented, could possibly exclude her from Medicaid eligibility. You really should consult with an estate lawyer or elder law lawyer versed in Medicaid law before filling out any benefits application.

Do I need a Contract for Personal Service with my Elderly Parents?

Q: I am in the process of moving from my home in Pittsburgh of 28 yrs. to be closer to my Elderly Parents with Health Issues in Steubenville, Ohio. I have quit my job to be able to go back and forth every few weeks and sort and pack freely and my Parents are helping me by paying my bills, etc. temporarily. I am not caring for them, only getting closer in case I should need to. One Person says a caretaker contract is needed because of possible Medicare in the future, another says it shouldn’t be necessary until a certain dollar amount as a gift is surpassed. Can someone clarify please?

A: You really should consult with an Ohio elder law attorney. If your parents may need Medicaid assistance to pay for home care or nursing care in the future and an application to Medicaid may be foreseeable, you do need advice on how to draft a caretaker contract in compliance with Medicaid regulations. This way, the money paid to you as a caretaker, will not be subject to the Medicaid 5 year look back. An attorney may also advise you on other ways to shelter your parent’s assets while maintaining Medicaid eligibility.