Getting Mom on Public Assistance in NY

What is the name of your state (only U.S. law)? NY, NYC

I'm posting this on two or more forums as there's no specific topic area which covers this question so pardon the duplication.

I'm trying to get my mother on public assistance and disability. The disability ball is rolling but she has a mutual fund worth 26k which I know we have to dispose of to get her on public assistance. Here's the ideas I have to use up the money: 1) pay off remaining loans, 2) set up a burial fund, 3) buy a new used car that's more reliable.

I don't want her to dump this money and then get turned down and have no cash on-hand left so here's my questions:
1) How much cash on hand is she allowed to have?
2) Is she allowed to have a car?
3) Will they scrutinize the use of the 26k and possibly throw out her claim simply because she had it on hand.

Thanks.

soapygirl said:

What is the name of your state (only U.S. law)? NY, NYC

I'm posting this on two or more forums as there's no specific topic area which covers this question so pardon the duplication.

I'm trying to get my mother on public assistance and disability. The disability ball is rolling but she has a mutual fund worth 26k which I know we have to dispose of to get her on public assistance. Here's the ideas I have to use up the money: 1) pay off remaining loans, 2) set up a burial fund, 3) buy a new used car that's more reliable.

I don't want her to dump this money and then get turned down and have no cash on-hand left so here's my questions:
1) How much cash on hand is she allowed to have?
2) Is she allowed to have a car?
3) Will they scrutinize the use of the 26k and possibly throw out her claim simply because she had it on hand.

Thanks.

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Yes, to the burial fund and each state has a limit. Make and pay for pre-arranged funeral.

Yes, she can have a car. As for the rest, y'all are gonna have to explain to the state what happened to her money. Dumping assests to be eligible for public assistance is fraud. All states have a 5 yr look back period.

Thanks for the reply. I realize that "dumping assets" is illegal but we're not talking about millions of dollars. 26k can easily be eaten up by paying off loans, setting up a burial fund ,and purchasing a car. Such expenses can be easily demonstrated to the state.

soapygirl said:

Thanks for the reply. I realize that "dumping assets" is illegal but we're not talking about millions of dollars. 26k can easily be eaten up by paying off loans, setting up a burial fund ,and purchasing a car. Such expenses can be easily demonstrated to the state.

Click to expand...

Yes, but you (she) will still have to explain to the state why she is purchasing a car and pre-paid funeral when she needs public assistance. What you are proposing is fraud.

Blue Meanie said:

Yes, but you (she) will still have to explain to the state why she is purchasing a car and pre-paid funeral when she needs public assistance. What you are proposing is fraud.

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Its hardly fraud.

In fact it is NOT fraud at all.

Indeed she would be allowed to retain a portion of that retirement account as an excludeable asset.

Other excludable assets

Burial funds or prepaid funeral expenses (up to a certain figure)

A car - up to a certain excludable value. This is the VALUE of the car, not what was paid - which could be more or less.

Minor savings

Basic Household goods

Personal clothing

Durable medical equipment

Unless the actions taken are bogus or concealed, these transactions proposed are allowable spend-downs to asset qualify for public assistance.

commentator

I gotta ask. Okay, you're trying to get mom on Social Security Disability. That's a federal program, no income requirements or restrictions. It takes a long time, involves a lot of paperwork, but ultimately, she's on Soc Sec disability. I gather she's not old enough for Medicare?

You also want to get mom on public assistance, which is a state program, based on economic situation, though she has a 25K mutual fund. What they're going to ask is why? She doesn't qualify. There is money here to meet her needs, at least for a while. You can use some of that money to buy her a burial plan. She is allowed to keep some assets as has already been mentioned. In my state, it's currently $2000. You can find out what it is in NY. It's not much I bet, not 25K by a long shot. But first and foremost, you're going to have to wait to get her on public assistance until she has spent enough of that 25K for her personal needs to qualify. And not on anything but her reasonable expenses such as food and shelter and medical care. In other words, nothing for family members, no paying off the family's mortgage, no gifts to grandchildren, no big new purchases of clothing, homes, cars, etc.

They will have access to the income tax statements, the checking accounts, everything she has had for the "look back" period, so if this money has been there and has disappeared suddenly without receipts to show it being spend for her needs, and now she is poor enough to qualify for public assistance, she just isn't going to be put on medicaid for a certain period of time. A sanction. Not fraud, just no assistance.