About 3 years ago my grandmother gifted me a large amount of money. There is a good chance she may have to go to a nursing home within 2 years. She is 93 and only has social security income and she owns her home. I still have all the money and am using the interest to help pay our bills. Is there a chance the nursing home could come after the money she gave me and if so, is there any thing I can legally do to protect it? She has a will that will give me the house when she passes away. A bonus question: Is there any way to protect the house as well? My state is Virginia. Thanks.
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Grandmother gifted me money and nursing home 5 year look back. Is the money in jeopardy?
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Shadowbunny
Queen of the Not-Rights
How is her care being paid for? Medicare? Something else?
adjusterjack
Senior Member
If she expects Medicaid to pay for the nursing home at any time within that 5 year look back period, it's not going to happen until she uses up the money and becomes impoverished.
Read this:
https://www.familyassets.com/medicaid-planning/resources/protect-the-home
Virginia may have a Medicaid website with more information.
You don't get to pocket the cash (or get the house) while the taxpayers foot the bill for your grandmother's care.
commentator
Senior Member
The thing is, Medicare, which is not income based, will pay for lots of medical things, but it absolutely will not pay for a nursing home except under certain limited situations and for a certain limited amount of time. And since somebody must pay, they immediately ask the individual to pay. If your grandmother who gave you this large amount of money didn't give you all her money, she'd have to pay for her own care after any time that Medicare would cover, using her assets. If she owns her own home, they can put a lien on that home to pay for some of the care though they will not take it until she has passed. Once she's paid out all her available assets such as money in the bank, the necessary care would begin to come from Medicaid, which is income based.
But to qualify for Medicaid, you must be low income. As someone said here, you cannot expect the taxpayers to pay for her care so that she can leave her grandchildren well off. In the case of qualifying an elderly person for Medicaid, there is a "look back" period, as you know. What you do not understand is that if there's nothing that Medicare part A and B is paying for that is medically necessary right now, then you have no need to apply for Medicaid.
There's no reason to apply for Medicaid right now because there's no need to do it. And, if you did apply, she'd immediately be found ineligible due to the large cash gifting she made to you, which would be considered a voluntary divesting of her assets to enable her to qualify for Medicaid. They'd say, no, not only does she not need treatment under Medicaid now, let's use up all this money before you qualify.
But the point I see here as very important is that you've got a 93 year old person here that you are apparently living with and we hope, caring for. There is NO possible way you can predict what in the world may happen regarding her health in the next two years. You seem mighty sure she's going to be around two more years. She might just fail to wake up tomorrow morning-- then all your worrying about and trying to predict what Medicare and Medicaid and all these situations will pay for or might do was a complete waste of time. Or as happened in the case of a 90 something person I know, they fell, broke a bone, were in the hospital a week, went to a nursing home (fully paid for by Medicare) and survived for less than a month. No Medicaid ever necessary. Or she gets dementia, goes into a memory care unit, which takes the home after her passing. You just can't begin your estate planning when you're classified as super-old, and at this point, there's no way you can specifically predict what your grandmother will need in the next two years, or what exactly you ought to do.
If you doubt this you're more than welcome to talk to an elder estate planner and let them give you some possible alternatives.
But to qualify for Medicaid, you must be low income. As someone said here, you cannot expect the taxpayers to pay for her care so that she can leave her grandchildren well off. In the case of qualifying an elderly person for Medicaid, there is a "look back" period, as you know. What you do not understand is that if there's nothing that Medicare part A and B is paying for that is medically necessary right now, then you have no need to apply for Medicaid.
There's no reason to apply for Medicaid right now because there's no need to do it. And, if you did apply, she'd immediately be found ineligible due to the large cash gifting she made to you, which would be considered a voluntary divesting of her assets to enable her to qualify for Medicaid. They'd say, no, not only does she not need treatment under Medicaid now, let's use up all this money before you qualify.
But the point I see here as very important is that you've got a 93 year old person here that you are apparently living with and we hope, caring for. There is NO possible way you can predict what in the world may happen regarding her health in the next two years. You seem mighty sure she's going to be around two more years. She might just fail to wake up tomorrow morning-- then all your worrying about and trying to predict what Medicare and Medicaid and all these situations will pay for or might do was a complete waste of time. Or as happened in the case of a 90 something person I know, they fell, broke a bone, were in the hospital a week, went to a nursing home (fully paid for by Medicare) and survived for less than a month. No Medicaid ever necessary. Or she gets dementia, goes into a memory care unit, which takes the home after her passing. You just can't begin your estate planning when you're classified as super-old, and at this point, there's no way you can specifically predict what your grandmother will need in the next two years, or what exactly you ought to do.
If you doubt this you're more than welcome to talk to an elder estate planner and let them give you some possible alternatives.
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commentator
Senior Member
As long as she can self pay for her care, Medicaid isn't an issue.
commentator
Senior Member
Where are you and grandma going to live if you sell her house? Do you have the legal ability to sell her house, like power of attorney, or does she want to sell her house and move somewhere? And biggest question, how do you know the money isn't "safe" now? Why are you so worried about "keeping the money safe?" If your grandmother needs care in the next two or three years, she needs care provided by her money. That's the first priority of her having the money, to support her and keep her and provide the medical treatment that MAY be necessary for her in her old age, not making sure a grandchild has money after she's gone.
Shadowbunny
Queen of the Not-Rights
It depends on the powers granted to you by the POA.
LdiJ
Senior Member
The money that she gave to you would not specifically be at risk.
Lets give an example. Your grandmother gave you 100k. Lets say that her home is worth 150k and a family member caregiver does not live with her.
Medicaid could do the 5 year lookback, see the 100k that she gave to you, and determine that she has to pay 250k in nursing home bills before Medicaid will kick in (the 100k she gave you plus the 150k her house is worth). Therefore she might be high and dry if you don't use the 100k she gave you to cover nursing home bills. You would not be required to do so, but your grandma could be in a world of hurt if you don't.
If your grandmother never needs to go into a nursing home, then its a moot point. However, if you do not take good care of her you could get accused of elder neglect/abuse.
Lets give an example. Your grandmother gave you 100k. Lets say that her home is worth 150k and a family member caregiver does not live with her.
Medicaid could do the 5 year lookback, see the 100k that she gave to you, and determine that she has to pay 250k in nursing home bills before Medicaid will kick in (the 100k she gave you plus the 150k her house is worth). Therefore she might be high and dry if you don't use the 100k she gave you to cover nursing home bills. You would not be required to do so, but your grandma could be in a world of hurt if you don't.
If your grandmother never needs to go into a nursing home, then its a moot point. However, if you do not take good care of her you could get accused of elder neglect/abuse.
Just Blue
Senior Member
How much money did she gift you?
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