My Dad could not afford to replace his HVAC out of his cash. I have loaned him the money. How do I document that I am to be reimbursed?

Thank you all for your responses!! Daddy isn't on Medicaid yet. I just want to be reimbursed before they take everything.

I hate to pose this question, ljohnson7242, if your father is on Medicaid and can't afford his home is it time for assisted living or a nursing home? My concern is if you're not the POA and can reimburse yourself when your father saves money (I hope) then there's a potential you could be loaning more money for maintenance/repair for your father's home.

Put a lien on his house until pay back - don't round the number off - put $2,398.75 not $2,400.00 - don't forget to include the taxes - this will show you get the money first in case of sale

ljohnson7242, does someone have durable and medical POA for your dad. At this point, it sounds like some decisions need to by made with the POAs taking the lead.

Medicaid will not repay you.
But for future re-payment from your parent's Medicaid income, as per our Elder Lawyer...The best way to show expenditures and reimbursements to comply with Medicaid is to save not only the checks, but they will ask for the monthly statements where the payment was made from and where the reimbursement occurred. They track the money flow in the banks.

Any chance the $ paid by you could be divided by those to receive if any $ left & you be rembersed so all equally share gift to dad.

Make sure you have any agreement notarized

Medicaid won't repay you anything paid on behalf of your parent. Unless you have a loan agreement in advance, it's considered a gift from you to parent for their care and upkeep. If your siblings don't agree that you are due reimbursement from an estate, you're out of luck on getting reimbursed.

Thank you all for your responses. You shared insight I hadn't thought of. I didn't state my question well. My main concern was to find a way for Medicaid to repay me if he can't. He does have dementia; so a written agreement wouldn't have worked. He owes his home and some acreage, but my siblings haven't agreed to tap into any of that.

ljohnson7242, yes, keep all of the invoices and copies of the checks where you had paid to make repairs. When Dad reimburses you, you just make a copy of that check. I use to keep a 3-ring binder of such items.

if your Dad wasn't able to afford to replace his HVAC, I would be concerned that he wouldn't be able to replace his roof, or plumbing repairs, or even appliances that are quite expensive now a days. How is Dad doing on paying his real estate tax bill? It might be time for Dad to downsize, which I know won't be easy.

The only drawback is whether your parent is competent to do a loan agreement. Did he agree to the replacement of HVAC and you loaning him the money? Doing a loan agreement after the fact with a dementia person can have real issues attached. Be cautious and document everything if this is for Medicaid. Are you talking about repayment from a house sale? From his social security? From his estate?

Write up a formal loan agreement, there are examples on line.