Spend down money and 60 month look back - New York State

[ranmanly]

Hi, I live in New York State. My parent's recently sold some land and their home and now have near $200K. They are almost 80 and really not in the best of health. I understand the 60 month look back period and how that works. I'm considering spending a small portion of their money to remodel my partially finished basement into a live-in apartment for them. Would the money I spend on that project (their money) be considered exempt in regards to future medicaid eligibility requirements? In another words, would that be an authorized spend down on their behalf - or would they (or me) be on the hook for that money come time to qualify for medicaid (if before the 60 month look period)?

 

[FlyingRon]

No. Renovations on someone else's house is not allowable. However, you may be able to enter into a caregiver contract or life care agreement to allow you to receive money from their assets under Medicaid. I strongly recommend you get your parents to an elder law attorney before you guys do something that adversely affects them in the long run.

 

[adjusterjack]

Yeah, pretty much what I started typing but Ron got in ahead of me.

Here's some information addresses that kind of thing.

https://www.health.ny.gov/health_care/medicaid/reference/mrg/june2010/page353-359-2.pdf

I strongly recommend you get your parents to an elder law attorney before you guys do something that adversely affects them in the long run.

Ditto that.

 

[ranmanly]

Thanks to both responses. Will definitely be seeking out the proper thing to do via an elder law attorney prior to any decisions!

 

[LdiJ]

Thanks to both responses. Will definitely be seeking out the proper thing to do via an elder law attorney prior to any decisions!

I am going to give you different advice. If its in the best interest of your parents to move in with you, and some of their money is needed to make your home comfortable for them, then who cares whether or not that is a Medicaid allowed expense? Its simply in the best interest of your parents.

 

[ranmanly]

Thanks LdiJ. My wife’s a PT and works with geriatrics in a nursing home and also happens to only work once a week nowadays... so she’s pretty in tune and somewhat skilled (or at least fully understands) what level of care might be needed in the future. This and my ability to be handy enough to do a small project like this myself, may be enough to say yes to it. However, so that I’m not on the hook in the future for spending a large amount of their money I may take our own money and do it. I’ll be discussing all option with an attorney prior to settling on a direction. Thanks for your thoughtful and caring input for my parents!

 

[FlyingRon]

I am going to give you different advice. If its in the best interest of your parents to move in with you, and some of their money is needed to make your home comfortable for them, then who cares whether or not that is a Medicaid allowed expense? Its simply in the best interest of your parents.

I don't see that as different advice. I pointed out two ways they could have their parents live with them that would allow them to legally use some of the parents assets without jeopardizing medicaid eligibility in the future,

 

[adjusterjack]

my ability to be handy enough to do a small project like this myself

Make sure you get a permit and do it to code or you may have expensive problems later if you have to tear it all out.