spending down money while on medicaid

[skimmons]

Ok, here is a short version of the story. My mother has been on medicaid for about 7 months. She resides in an assisted living facility, and here home in oklahoma has just sold for 53,000 dollars. I have been told that I have a month to spend down the money on her, ie we can buy a car, prepaid funeral arrangements, anything that she needs. But it has to be all gone the end of February (we will deposit her check Feb. 2nd). She only has 85 five dollars left over after the assisted living facility gets her money. BTW we live in texas. Can anyone tell me if all this info that I am recieving from this medicaid specialist that works for an attorney is true?

 

[skimmons]

bump! If somebody has anything, please let me know!

 

[Kiawah]

I'd suggest getting a consult with a local attorney specializing in Medicaid/Medicare.

Having POA for MIL, and having gone thru this process, my gut is that the state is going to claim the home $$'s. We didn't have a home to deal with, but all the assets had to be listed on the original application.

Your mother had a home as asset on application, and now doesn't, I'm betting someone is going to want to follow the money.

An attorney in your state who deals with this every day will provide you the best guidance. Act quickly, so you get the right guidance as to what might need to be reported as a home sale with her income taxes this year as well. You may have a tax liability that needs to get covered out of those funds.

 

[anteater]

bump! If somebody has anything, please let me know!

I suspect the lack of response is because nobody here is familiar enough with state-specific Medicaid regs to hazard an answer.

I am skeptical that somebody already receiving Medicaid assistance can spend cash to acquire exempt assets. And the "end of February" frenzy sure sounds like a way to dance around some reporting requirement. But that is just opinion and should be taken for what it is worth.

But if you trust the Medicaid specialist... Was this advice given in the context of an attorney - client relationship? Or some informal advice?

If you are uneasy, seek out another elder law attorney.

 

[BlondiePB]

I suspect the lack of response is because nobody here is familiar enough with state-specific Medicaid regs to hazard an answer.

I am skeptical that somebody already receiving Medicaid assistance can spend cash to acquire exempt assets. And the "end of February" frenzy sure sounds like a way to dance around some reporting requirement. But that is just opinion and should be taken for what it is worth.

But if you trust the Medicaid specialist... Was this advice given in the context of and attorney - client relationship? Or some informal advice?

If you are uneasy, seek out another elder law attorney.

Quite frankly, I was wondering what the heck does an elder residing in an ALF all of a sudden need a car?

 

[anteater]

Quite frankly, I was wondering what the heck does an elder residing in an ALF all of a sudden need a car?

Aw c'mon. Being down there in Senior Citizen Paradise, aren't there 1978 Eldorados all over the place? The ones in the carports that never seem to move? The ones whose hoods alone could be homesteaded?

 

[BlondiePB]

Aw c'mon. Being down there in Senior Citizen Paradise, aren't there 1978 Eldorados all over the place? The ones in the carports that never seem to move? The ones whose hoods alone could be homesteaded?

Don't know about AZ Senior Citzen Paradise's Eldorados, but down here it's typically Buick Park Avenues and another type of Buick.

Homesteading the hoods......now that's really funny.