Giving away savings

[jzevenbergen]

What is the name of your state (only U.S. law)? WI

My Father is 95 and was still living alone in his home until hostipalized a couple weeks ago and then moved to a local Nursing Home. I'm pretty sure he will be staying there the rest of his life.

My question is: He says he has about $50K left in the bank and a small home worth maybe $100K. He has always been generious with his money and given his 7 children gifts of money periodically of several thousand $ each. He has asked me if he can still give us money for Christmas or if he now needs to keep what's left for the Nursing Home. I assume he can still give some away but how much legally without the risk us children will be asked to return the gifts of money if he ends up living there several years?

 

[BlondiePB]

What is the name of your state (only U.S. law)? WI

My Father is 95 and was still living alone in his home until hostipalized a couple weeks ago and then moved to a local Nursing Home. I'm pretty sure he will be staying there the rest of his life.

My question is: He says he has about $50K left in the bank and a small home worth maybe $100K. He has always been generious with his money and given his 7 children gifts of money periodically of several thousand $ each. He has asked me if he can still give us money for Christmas or if he now needs to keep what's left for the Nursing Home. I assume he can still give some away but how much legally without the risk us children will be asked to return the gifts of money if he ends up living there several years?

Dad's money won't last too long because nursing home care averages more than $5,000.00 per month just for room & board. If/when he applies for Medicaid, the application asks about giving away assests. There's a 5 yr. look back.

 

[jzevenbergen]

5 year look back?

So are you saying not only should he not give any more money away, but if he applies for Medicaid in a couple years, they can force everyone he has given a gift of money to in the previous 5 years, to pay it back?

 

[anteater]

So are you saying not only should he not give any more money away.....

In a nutshell, "Yes."

.... but if he applies for Medicaid in a couple years, they can force everyone he has given a gift of money to in the previous 5 years, to pay it back?

Medicaid is administered at the state level. Check with the Wisconsin DHS or a Wisconsin elder law attorney.

 

[jzevenbergen]

Giving away assets

See previous posts. My Father has also told us to sell his house and belongings or take whatever we want. Can my Father give away any assets such as house, car or other valuables while in the Care Center or will the State look back at that as well as any cash he has given away? If we sell his house wouldn't the money have to go into his account to pay the Care Center if he runs out of cash? I agree the Care Center needs to be paid for caring for him, but is there a limit or guideline on how many years cash an elderly person should save for and when is it OK to let Medicaid take over?

 

[anteater]

....If we sell his house wouldn't the money have to go into his account to pay the Care Center if he runs out of cash?....

Yep.

The answers to your other questions are contained previous responses:
5 year look back.
Figure $5K per month minimum (and rising). $5,000 x 12 x 5 = $300,000.
Check with the Wisconsin DHS for the guidelines. They don't bite.