Guardian of my dad, whom has early dementia, is wanting to buy Christmas gifts. Is this allowed?

When Medicaid is doing a 5 year look back, if they choose to DO a look back at all, they're looking for very LARGE withdrawals from the bank account. Not $100 for gifts at Christmas; they're looking for a $10,000 'gift' he may have made to a family member, or something like that. When I was looking over the app for Medicaid recently (for LTC) and speaking to the rep who would help me file (for a fee), she told me I'd need to provide 5 years worth of bank statements only IF Medicaid required it. They'd first ask if there were any large or unusual withdrawals over the past 5 years, and if not, they probably wouldn't even ask to see the statements.

I've ordered lots of expensive things for my folks over the years, including two $1500 zero gravity recliners, some furniture, mattresses, Harry & David pears, all sorts of things......Italian cookies that are $28/lb. Those are living expenses and small luxury items aren't what Medicaid is worried about.

Naturally, if you have questions/concerns, you should speak to someone who helps you go thru the Medicaid application process, or, an Elder Care atty. The nursing home I want to get my mother into gave me the name & phone number of 3 agencies that handle Medicaid applications and walk you thru it, provide the forms, answer questions, and submit the apps and do the follow ups. VERY helpful people.

Good luck!

$300, I see no problem in that. Are you using a credit card or taking it from his bank acct? My Mom had no credit card so not sure if it was asked for. She did keep her statements and out of 5 years requested, the caseworker picked 4 from each year. I really don't think that Medicaid will question $300. They are looking for large sums of money that may have been given to someone. So he shouldn't loan any money, buy a car for anyone but himself. If he sells a house all proceeds go into an acct and used only for his needs. He can't add onto one of the kids houses using his money for instance. Medicaid looks at that as an enrichment for the child. The child profits if they eventually sell the house.

If you are one of the 3 daughters and guardian, I may not get one for myself. If Medicaid questions the $200, then easily paid back.

P.S. the price consulting an elder lawyer may cost as much or more than just giving the $200.

I was told no the expense was not permitted.
I was guardian for my Husband (long story) and he always would buy me a gift at Christmas as well as for my birthday. I purchased a gift and I was told that I would have to repay the funds back into his account.
I would say IF your dad is aware enough to verbalize that he wants to buy a gift for family members then it might be alright. But it might be something you want to ask the lawyer or be prepared to repay into his account the value of the cards purchased. (You might even want the lawyer to ask dad if he wants to buy gifts if he responds appropriately then it may be acceptable.)
I would think that family members would understand not getting a gift this year. (if they don't ..they don't deserve a gift anyway!)
The only reason to "spend down" his funds is if you will need to apply for Medicaid for him.

I don't know what you mean by “early” dementia, but too many people think that dementia means inability to decide, absence of independence, detachment from reality. Many people can function normally for years until the disease advances enough to preclude independence. So go ahead and purchase the cards.

Why do you have to spend down his money? Are you trying to qualify him for Medicaid? You might want to speak to an elder care attorney so you know exactly what you can and cannot do.

Do you have a Medicaid application in view? That's usually what the "spending down" is all about.

If it weren't for that, the correct thing would be to continue to carry out your father's wishes as he has always done it for himself, provided it doesn't affect his own financial welfare.

But Medicaid does make a difference because they will look back over the last five years at where his money has gone, and money that has been given away could affect his eligibility. That $300 would be added back in as a penalty, for example, and delay when he could start receiving support.

Your state probably will provide clear guidelines about what is and is not allowed when Medicaid calculates legitimate spending. Try Googling "allowable expenses for Medicaid in [your state]" and you should be able to find out.

To avoid his being upset this season, could he be persuaded to try a more modest gift, say $10 each? Or could you buy the $100 ones as normal, and then each recipient could discreetly pay it back into his account?