Spending Down Assets

[fluffychenille]

What is the name of your state? NJ

I have power of attorney for my my who is 85. He has some dementia and is unable to make financial decisions on his own. He has a limited income and we have decided due to his home needing some major repairs, to get a "reverse mortgage" so funds will be available to make these repairs and also for there to be available funds in the event we need to hire some help in his behalf. He is able to care for himself at the moment because a disabled brother is looking after him but down the road this may not be feasible. In any event...

My question is**************...if we do this will these funds be in question by NJ Medicaid if he should have to enter a nursing home in the next few years. Also, is he allowed to appropriate...give a monetary gift to each of his children as part of a spend down, and if so what is the limit on that amount? I don't want to jeopardize his ability to receive Medicaid if it becomes necessary so I don't want to do anything with the funds from the reverse mortgage that Medicaid will penalize him for. thank you!

 

[garrula lingua]

You need to see an Elder Law attorney.
The issues regarding 'spend-down' & Medicaid & trusts are too complex to answer.

There is also the possibility that your goal of preserving assets (trusts/spend-down/Medicaid) may be in conflict with the 85 yo's desires to stay independent (reverse mortgage) & keep all his assets to maintain himself.

 

[fluffychenille]

You need to see an Elder Law attorney.
The issues regarding 'spend-down' & Medicaid & trusts are too complex to answer.

There is also the possibility that your goal of preserving assets (trusts/spend-down/Medicaid) may be in conflict with the 85 yo's desires to stay independent (reverse mortgage) & keep all his assets to maintain himself.

Thank you for your response**************We did go to an "elder care attorney" about 6 years ago when my mother entered a nursing home. We did so to preserve some of my fathers assets and it worked out well for him. However, the cost of these attorneys is quite high and I am trying to maintain my fathers financial life without going thru that cost if I can.

In any event, I am not looking to spend down "all" his assets and leave him penny less so to speak...just want to be able to distribute some of his assets, which is not a fortune, before a nursing home ends up with them without depleting what he needs to live independently for the time being. We all have the desire for my father to remain independent, and for now, as long as my elder brother is there caring for him when he is not working, that is feasible, but his mental state at the moment is slowly changing and he will be needing constant supervision very soon, which means he will most likely be living with my husband and I and hopefully will never enter a nursing home if we can help it. Just want to be prepared if that becomes necessary.

Thank you again for your time.