Medicaid Estate Recovery

[chatterweb]

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

If my Mother has to enter a facility private pay and runs out of money, will she be able to apply for Medical and be able to stay in the facility? She has dementia and she has 2 parcels of property that would be sold to pay for her future care. I am just asking if Medical will sell, or me acting as DPOA have to sell these parcels?

 

[HappyWanderer]

A person should pay for their medical care.

What is your question exactly?

 

[BlondiePB]

A person should pay for their medical care.

What is your question exactly?

He/she asked:

I am just asking if Medical will sell, or me acting as DPOA have to sell these parcels?

 

[HappyWanderer]

I thought I answered that.

 

[BlondiePB]

I thought I answered that.

Not exactly...to me anyway.

Originally Posted by chatterweb
I am just asking if Medical will sell, or me acting as DPOA have to sell these parcels?

It depends. You can pay for the nursing home out of your own pocket or sell mom's property to pay for her nursing home. The choice is yours.

 

[HappyWanderer]

Without knowing the numbers it is not possible to tell exactly, but, property which is not a personal residence is probably not a protected asset and the state could require a person to sell it to gain funds before medicaid would kick in.

 

[chatterweb]

I have placed my Mother in a private pay facility. She is being taken care of better than I could, plus me watching her decline was a toll on my mind.

I have one parcel for sale and that sale, if any proceeds will be escrowed to her MMA which is in her Trust, to pay for her care.

I am glad for this forum, and glad I took steps to place my Mother when she needed more help for Dementia.

At this time, Medical is not necessary, as her assest and income are paying for her care.

 

[BlondiePB]

I have placed my Mother in a private pay facility. She is being taken care of better than I could, plus me watching her decline was a toll on my mind.

I have one parcel for sale and that sale, if any proceeds will be escrowed to her MMA which is in her Trust, to pay for her care.

I am glad for this forum, and glad I took steps to place my Mother when she needed more help for Dementia.

At this time, Medical is not necessary, as her assest and income are paying for her care.

chatterweb, I'd like to personally thank you for taking care of your mother and doing the right thing with her assests for her care. Kudos to you being a stand up person.

 

[chatterweb]

She is privatepay for now

In a Private Care Home which is licensed...
She has her income of 1225.00/mo plus rental income of between 500.00-1100.00 (right now it is 500.00)
She has this Commercial Property and I am not sure if I need to sell it now or keep it rented. (mediCal)

Also, it is in a Irrevocable Trust in her name, and I am Co Trustee, and POA for her. I helped her set this up through an Elder Law Attorney, but, the last visit, the Attorney advised me of trying to Preserve her estate for the kids and I never went back to her for new advice.

The initial reason I picked this Attorney was proximity to my Sibling. But he is uninvolved and has not helped me, visited her much (2X in 1 year) sent her any birthday gift even though I sent him a monetary one from her 2 months ago. His Birthday is before hers too...

I just cashed in his kids Gerber Life Insurance Policies that my Mom had taken them out but years ago, now, I see no reason for her to contribute to them, the money will go towards her care.

This month is one of their Kids birthday, she will not be sending them a gift either.
I had Mom live with us rent free, and she never gave us gifts, and I cared for her as did my spouse. I miss her so much it hurts.

Anyways, this is all so confusing for me, but, I guess I am doing the right thing.
My Mom forgot who I am now, but she is safe and well taken care of.
I am hoping her Estate will continue to pay for her care, sold or not.

 

[anteater]

Also, it is in a Irrevocable Trust in her name, and I am Co Trustee...

If the trust was properly created, is irrevocable, and the property was transferred to the trust in the proper time frame, then it may not have to be sold and the funds used for mother's care before qualifying for state assistance.

 

[chatterweb]

If the trust was properly created, is irrevocable, and the property was transferred to the trust in the proper time frame, then it may not have to be sold and the funds used for mother's care before qualifying for state assistance.

I am not looking to keep her estate for me.

I already am paying from my bank and my paycheck for some of her care because right now she needs financial help.

I would like to keep her Independent of the Medical System, because I told her I would keep her as independent as long as I could, and I meant mentally, but I know she would like to be paying her way, and not be on Gov't assistance.

But, I realize I cannot bankrupt myself and my family for this...

 

[commentator]

In the first place, you need to sit down and do a little checking on your state's webpages regarding Medicaid for nursing home patients. What happens is that you private pay until your mother runs out of assets. Then, it still being medically necessary to keep her in this facility, and her being without assets to pay for her care, they'll be willing to certify her for Medicaid. A child won't be required to fund their parent's health care, though if you are willing to do it, I'm sure they'll be happy to take your money to keep your mother "off welfare."

But in most cases, the facility will be able to tell you almost everything you need to know. Each facility has a social worker, and they've seen almost every eventuality of how these things play out, including one where Mother has trusts and property and stays long enough to run out of money. When your mother can no longer pay for her care from her assets, it will be time for someone like yourself to talk to Cal-care and get a picture of what she will be allowed to have and still receive assistance, how the property should be dealt with and the trust issues will play out.

It is a shame that so much of our country's medical assistance assets must be spent for the end of life care that our elderly people are getting, but this is a fact of life. It is not feasible in most cases, for a person to receive this level of skilled care over a long period without totally using up their assets. But then, this is why they saved and accumulated them. It seems fair they should be used for the person's care.

But if it was medically necessary to place her in this facility, probably Medicare will pay for some of her expenses now too. In many cases, the children think they're going to be looking at years and years of long term care, when, to be blunt, few patients really last a long time once they require skilled nursing care. Talk to your facility social worker and wait and see how things go for a few months. If you pay any bills or buy things for your mother out of your pockets, keep detailed records of what you have spent and for what. They may come in handy later.

 

[chatterweb]

Just an update...

Her former home, is a town home. I had rented it at the instructions of her Elder Lawyer 1 year ago.

I then placed her in a private pay care home, and decided to put her old home for sale. That was in January 2010. It is still for sale and 4 months ago I have dropped the price to where she would break even after all the closing fees.
I have had 3 offers. One was for FHA loan, and the HOA does not allow FHA or VA so we had to pass. The 2nd was a conventional loan and the Buyer wanted Termite Clearance in two lower surrounding units, which never happened (due to HOA negligence) so the buyer walked. The last buyer could not get a loan because the HOA has no cash reserves. 3 more things are FEMA now requires her SOON TO ADJ RATE mortgage to carry flood insurance, her HOA dues increased and there is a pre-foreclosure in the complex.

I have 2 choices:

Re rent it out and face chasing tenants for rent, assessments due to HOA being insolvent and FEMA AND lots of other unknowns or

Stop paying the mortgage and let the bank take it back. The property, right now still has 2K in equity, after a traditional sale and all the closing costs...
I did also contact a few investors to see if they would buy it for her loan amount, no takers...

Her cash reserves are low due to paying the mortgage, taxes insurance and HOA dues for 6 month while the property was listed for sale.

The property is in CA and the lender cannot come after her, but can only take back the property and foreclose and ding her credit. This is her only debt. I have contacted them as a 3rd party for a DIL.

I am Co Trustee of the trust the property is in.



Trying to preserves her assets, not her credit score!

I cannot believe this has come to foreclosure, but this HOA is the one to blame here, maybe. Or maybe the economy...

I feel really bad to trash my Mother's credit score. At the same time, I want to preserve her assets and am confident she will be able to live in the home she is happy in, f with the foreclosure, HOA judgments etc...

I will pay the termite people who did work on her unit... I am not going Deadbeat on all of her debts, but only the ones she really has hardship on...