Monthly withdrawl from savings

[Lykele]

What is the name of your state? New York

My parents live by themselves and do pretty well for folks in their 80's. However, they live very "minimally". With gasoline prices going up along with heating oil, food, prescriptions, etc I suggested to them to take $1000 per month from their savings to combine with their social security checks to keep pace. Maybe even eat a little better as well.

My father is concerned that if the day comes when they might need assistance from Medicaid, they will be penalized for these withdrawals. I have no idea how this Medicaid look-back works, but isn't there some reasonable amount of your own savings you can use just to live on?

Thanks for any information.What is the name of your state?

 

[lwpat]

The "look back" only applies to transfers to others for less than fair market value. They will have to exhaust their savings in order to qualify for Meidcaid anyway. The rules are very complicated especially when there is a spouse. If they have a significant amount of assets, they need to consult with an elder care attorney. They should also prepare a living will, the Five Wishes is a good form if accepted in your state, POA and wills. The DRA of 2005 significantaly changed things, especially with estate recovery.

This is all as much for your benefit as it is for theirs. Most people avoid these issues until it is too late and then you will suffer trying to straighten everything out. Do it now while they are still competent.