+ Reply to Thread
Results 1 to 2 of 2
  1. #1
    leahmartinez is offline Junior Member
    Join Date
    Oct 2005
    Posts
    3

    Exclamation old age pension and medicaid/medicare

    What is the name of your state? colorado

    What is the name of your state?
    I'm writing in regards to my parents. They live in southern Colorado. My mom is receiving old age pension, and medicaid/medicare. My dad is receiving social security. Several years ago, they purchased a life insurance policy for $25,000. The social services department told them they had to drop the policy, get the cash value of it, and spend it on their home or my mom would not receive her benefits anymore as this is considered a resource. However, this was after she had already starting receiving the benefits. Is this legas since it was their mistake? They cashed it out and paid off the house, but lost out on a lot of money from the policy. Now, they are in the process of selling their home. The social services department is now telling them that after the home is sold, and a new home is purchased, that the remainder of the proceeds goes to the state of colorado since my mom has been receiving all of these benefits all of this time. If they don't give the money to the state, she will lose her old age pension and the Medicaid she receives. This does not sound kosher to me. I am in the process of reviewing the policies and regulations. However, I would like to know if this is correct and would the next steps are. If this is true, I would like to know what other options they have to preserve the house money as they are NOT wealthy and have been paying on their home for years. What happens if they get the money and spend it or give it to their kids? Will there be any kind of penalties or lawsuits??
  2. #2
    BL
    BL is offline Senior Member
    Join Date
    Jul 2003
    Location
    In the good old US of A
    Posts
    19,296
    Quote Originally Posted by leah******ez
    What is the name of your state? colorado

    What is the name of your state?
    I'm writing in regards to my parents. They live in southern Colorado. My mom is receiving old age pension, and medicaid/medicare. My dad is receiving social security. Several years ago, they purchased a life insurance policy for $25,000. The social services department told them they had to drop the policy, get the cash value of it, and spend it on their home or my mom would not receive her benefits anymore as this is considered a resource. However, this was after she had already starting receiving the benefits. Is this legas since it was their mistake? They cashed it out and paid off the house, but lost out on a lot of money from the policy. Now, they are in the process of selling their home. The social services department is now telling them that after the home is sold, and a new home is purchased, that the remainder of the proceeds goes to the state of colorado since my mom has been receiving all of these benefits all of this time. If they don't give the money to the state, she will lose her old age pension and the Medicaid she receives. This does not sound kosher to me. I am in the process of reviewing the policies and regulations. However, I would like to know if this is correct and would the next steps are. If this is true, I would like to know what other options they have to preserve the house money as they are NOT wealthy and have been paying on their home for years. What happens if they get the money and spend it or give it to their kids? Will there be any kind of penalties or lawsuits??
    This is the 3rd thread started on this subject . I suggest in the future click on this one and reply . You can also edit your other two and delete them .

    Let's keep it all under 1 roof ,so to speak .

    Now , I'm not familiar with old age Pension , but under Medicaid anyways , they count eligibility by assets and income , so the State is correct about assets , and NO the extra from a home sale could not just be given away .

    I suggest try contacting a Few Elder Source Agencies .

    If the home is paid for , why don't they just continue living there ?

    Also , depending on Family , they may be able to do some sort of Deed transfer w/ life rights to live there rent and utility free , thus preserving the Estate until it is sold .


    You should consult a Real Estate Lawyer .

Similar Threads

  1. SSDI and medicaid/medicare
    By criss11401 in forum Social Security Disability / SSI Law
    Replies: 4
    Last Post: 01-11-2010, 01:19 PM
  2. Living Trust & Medicaid/Medicare Assisted Care
    By cardminger in forum Wills, Trusts and Estate Planning
    Replies: 3
    Last Post: 08-27-2008, 05:25 PM
  3. Medicare/Medicaid for dependents question?
    By Dougnddeb in forum Social Security Disability / SSI Law
    Replies: 3
    Last Post: 12-30-2007, 09:59 AM
  4. SSD,Medicare,Medicaid Law and an Inheritence
    By mochannb52 in forum Social Security Disability / SSI Law
    Replies: 1
    Last Post: 09-28-2006, 05:12 PM
  5. JWROS vs. Medicare/Medicaid (Calif)
    By roesler in forum Wills, Trusts and Estate Planning
    Replies: 1
    Last Post: 08-12-2000, 02:10 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

© 1995-2012 Advice Company, All Rights Reserved

FreeAdvice® has been providing millions of consumers with outstanding advice, free, since 1995. While not a substitute for personal advice from a licensed professional, it is available AS IS, subject to our Disclaimer and Terms & Conditions Of Use.