My boyfriend’s mom is blind and in a nursing home with signs of dementia. Medicaid pays for it. We just discovered stocks we didn’t know she had. She never told us about it until now. Her brain is stuck in the 90’s, but she does remember things sometimes. Not often though. The nursing home did the Medicaid application. We reported the find to Medicaid. We are spending down the asset on a loan that’s in her name. We have documentation and receipts of this. Is there going to be a penalty? We honestly didn’t know about this and we are freaking out.
Sorry, this I don't understand "We reported the find to Medicaid. We are spending down the asset on a loan that’s in her name." I don't understand taking out a loan and how you got it with her on Medicaid. Why did you not just cash in the stocks and use them to pay for her care, then go back on Medicaid? When you told Medicaid, why did they not tell you how to handle it? You may need to consult with an Elder Lawyer.
You really need to speak with an eldercare attorney. It will be worth the expense and is allowable expense that will paid for with her funds to ensure you are not going to get a claw back from Mediciad.