Hello-I have given up on the so called elder attorneys in mom's home town. I am looking for a blueprint on how to handle her accounts like ROTH IRA, bond fund, Metlife insurance with respect to Medicaid. She is still not on Medicaid after a year of DSS paperwork and I would like know if her assets can be protected for final expenses and any other expenses that may crop up. I would like to insure that she can keep as much of her hard earned money as possible. Sorry if this is a dumb question but I have wasted too much time on attorneys that are unavailable, dont understand elder law or uninterested.
Your mother may keep the house and the expenses will be paid from the $33k of assets in her accounts. However, expect a claw back when the house is sold. In this electronic era you can not hide anything unless your hide it in your mattress.
I am not sure of your mothers specific case or location but it really isn't difficult finding an eldercare attorney in NYS. Every county has very qualified attorneys and services to help you. Her hard earned money should be used for her care. I am from NYS and POA for my uncle in a nursing home. It was a time-consuming endeavor to spend down and gather the support needed for Medicaid but it wasn't impossible.
My Moms application went smoothly. I had already cashed in her CDs. So I spent them down. Cashed in her insurance policy, and that paid for a prepaid funeral. ( if policies are from employers or no cash in value, cannot cash in. Not sure though if Medicaid becomes beneficiary)
My mom has hundreds of thousands of dollars in investment accounts. These funds are being used to pay for the assisted-living facility where she lives and for taxes and upkeep on the house that she still owns. IMO, this is the appropriate approach for all people to take.
So, start using her money to make her life pleasant. Start by getting her the nicer, single rather than shared, room that you mentioned below.
To be on Medicaid Mom must spend her assets down. Because Medicaid has a 5 year look back, you can no longer protect her assets. The Medicaid application has info needed that only you can provide. Five years of statements for one. Once Mom is on Medicaid, her monthly income of Social Security and any pension she may have, goes toward her care and Medicaid pays their share. She will keep Medicare and Medicaid will pay whatever medical bills that Medicare does not cover. If Mom passes with any debt, there will be no estate to cover it. You will not be held responsible for it. You also will have no inheritance.
You really need to sit down now with a Medicaid rep to find out what you can and can't do. She has a house, it must be sold at Market Value, so does her car. You cannot apply for Medicaid in advance you do it about 90 days before her money runs out and you only have that 90 days to get them all the info needed to complete the application. If you don't complete the application in 90days you start over. You need to keep in touch with the caseworker.
For me, Mom had 20k which paid for LTC for 2 months, May and June. I applied for Medicaid in April. In those two months, I spent mom down and supplied the info needed. June I confirmed with the caseworker he had all the information needed and July Medicaid started.
Until Mom is on Medicaid, you will be responsible to use her assets for her care. You will be doing all the leg work. Once on Medicaid, you can allow the facility to become payee of her Social Security and any pension she may have. Then you are just the son who visits.
Is her Metlife insurance policy a whole, guaranteed life policy with a cash value? Is the payout enough to cover final expenses? How much is the cash value? That is something Medicaid will want to know as part of her "assets" she could conceivably tap into if needed.
Use her savings, Roth IRA and bond funds first. Sell her house if needed when her savings are exhausted, pre-pay for funeral expenses now, then if she dies with the life insurance policy still in effect, that will go to you, assuming you are the beneficiary. You may not ever need to apply for Medicaid if her money lasts for her lifetime. Her money is not for your inheritance, it is for her comfort in her last years.
What state is your mom in? Do you know what the Medicaid allowable assert is for long term care?
Medicaid doesn’t handle anyone’s finances, nothing is expected to go to Medicaid once an applicant qualifies. My mother’s SS check went to the NH, Medicaid paid the rest. The qualifying does require a spend down of assets but Medicaid isn’t doing that, merely looking for proof it’s occurred. They have the right to recover costs of care after death if assets, like a house, are available to place a lien on. Pre pay for funeral and burial or cremation in the spend down. There won’t be left over expenses
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