My mother is living in long term care in Massachusetts now and starting this month her allowance to keep paying her home related bills will end. We are in the process of listing her house for sale. She can no longer make the payments to her credit cards, but they could be paid off when the house sells, provided medicaid doesn't take all of the money. My question is, what is my best action as her POA? Do I contact the credit card companies and explain what is happening and try and get them to settler her debt? Do I just let the fees pile up? The only thing that we would like to gain from the sale of the house is to be able to pre-pay her funeral costs. I don't expect to see any other money from the sale of the house and we are ok with that. Thank you.
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If you sell the house, the proceeds must be used to pay her nursing home hills until that money is gone. The money has to go for her benefit and nothing else. Medicaid may see paying for anything else as abuse, and refuse her benefits until the money is paid for her care.
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