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JenLong60 Asked March 2017

If we donate Mom's furniture and some household items does that create a problem when we apply for Medicaid?

My mother is in NH and we are getting ready to sell her home and dispose of her possessions.  The furniture and appliances have little, if any, value. We believe if mom were able to make decisions re: these items she would want them to go to someone who could use them.
There are a few specific items that have been listed in mom's will that go to certain people. Is it a problem if they take possession now? And if a recipient does take possession and then decides to sell what they have, is that illegal?

JenLong60 Mar 2017
the car is just a chevy corsica, no sentimental value. and yes, the brother is quite anxious to see because he needs the money.

Countrymouse Mar 2017
And you believe that your brother is more likely to sell the antique than to spend his Saturday afternoons lovingly polishing it, hm?

24 years is pretty antique for a car, too! Is it a very special one?

It doesn't sound as if, even if you cleared everything away now, there could be much in the way of gifting penalties. But if it were me I'd want to get some kind of independent appraisal of the total value, if only to have it to hand for when Medicaid asks. You could do worse than call Medicaid and take their advice, too, of course.

I'm sorry, I know this is a rather heart-sinking project at the best of times. And the thought of having to go round the house putting little price labels on things just makes it worse.

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JenLong60 Mar 2017
Mom has dementia which is progressing pretty quickly. She's not likely to even remember anything re: her possessions. There are really only two items with value, one is her 24 year old car and the other is an antique corner cupboard that, in her will, goes to one of my brothers. Combined value is about $1,000.

Countrymouse Mar 2017
There are much better commentators on Medicaid's procedures than I can hope to be, and I'm sure they'll be along in a moment; but meanwhile as a suggestion could you get a valuer in to give you an assessment of the total figure these things might theoretically amount to? House clearance companies, auction houses might be a place to start.

I'm all in favour of legacies going to their named beneficiaries in advance. My aunt did this with her jewellery, herself, and it saved so much time and trouble for all concerned. It will only be a Medicaid-related problem if their combined value affects your mother's nominal total assets (bearing in mind that the Medicaid threshold is not what you'd call generous); or I suppose it could be were your mother to change her mind about them. Is she able or likely to?

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