Okay, this is a long story...
Both of my grandparents had gone into a nursing home at roughly the same time and I began the Medicaid application process for both of them. Initially the nursing home told me that they could handle the application, but then two months later (of private pay) I was told that they would not be able to do it, so I then began working with a Medicaid planning attorney.
I began working with this attorney in November, but then my grandmother passed away in early December. So now this attorney was no longer doing an application for my grandmother, since she had passed. We continued on with my grandfather's application, though, and are spending down his assets so he can qualify for Medicaid.
Here's where I'm concerned. I've begun to grow suspicious of my attorney's intentions. They seem incredibly interested in making sure that I pay the nursing home for those couple months that were private pay. Not only that, but they are insisting that I use my grandfather's assets to pay off my grand*mother's* nursing home bill.
I'm in the state of Florida, and it's my understanding that a spouse does not inherit their deceased's spouse debt, even medical debt, so I don't believe my grandfather is under any obligation to pay that nursing home bill for my grandmother.
But this attorney is insisting on it before they finish the application process. This means they're also refusing to draw up the Personal Services Contract (or Caregiver Agreement, or w/e it's called) to transfer my grandfather's remaining assets to myself, unless I pay off that nursing home bill first. They're also telling me that, as Power of Attorney, *I* am obligated to pay off that bill (using my grandfather's assets, of course). I know I'm obligated to "act in good faith" as a fiduciary, but I also know that my grandfather would absolutely want me to secure his finances for his family rather than pay off debt.
Throughout this whole process, my attorney has been extremely and suspiciously focused on getting me to pay off this nursing home bill. They don't care about any other debt, though. Never even discuss or ask about any other debts, not even medical debt. I even asked them about debt that my grandmother had from a different nursing home from a few years ago, and they didn't care about it. They only care about this specific bill from this specific nursing home. I know for a fact that my attorney gets lots of referrals from this nursing home, and I'm suspicious that they're getting some kind of kick-back or other incentive for making me pay this bill.
Has anyone else ever been in this situation?
Am I, as Power of Attorney, obligated to use my grandfather's assets to pay off his debts before paying myself as a caregiver?
Is my grandfather responsible for my deceased grandmother's outstanding nursing home bill?
3 Answers
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There is no securing your grandfathers finances. If he has money, then it needs to be used for his care. Medicaid will not pay for his care until he is spent down to the State cap which in my state is 2k. Then his SS and his pension, if he has one, will go to the NH to help offset the cost of his care. To receive Medicaid for NH care you must have no assets. (Home and car are exempt) You can't transfer them to someone else, put them in a Trust, etc while in the process of applying for Medicaid. Actually, you can't do it within the 5 year look back. Its called hiding assets and defrauding the State. What I am saying is there will be no money for inheritance. If your lawyer has not explained this, then he knows nothing about the Medicaid rules.
Now I will be corrected, I am sure, if I am wrong but I don't see any state allowing a NH bill to go unpaid if there is a spouse alive. Its called marital debt. So to me, Granddad is responsible for the debt. The money was Grandmoms too. The lawyer probably wants it paid because Grandpa is residing in the nursing home money is owed to. Maybe the NH won't allow him to stay if the debt is not paid.
In my State your allowed 90 days once you apply for Medicaid to spend down the money, get them all paperwork needed and find a place for the applicant. With you, you have the place so you have to figure how long grandpa's money will last and apply for Medicaid so when the money is gone, you go right into Medicaid. My Mom had enough money for May and June and July 1st Medicaid started.
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I do not know the laws in Florida, but if your grandmother had any assets at her death, they should be used to pay her taxes and any debts she had at death. Secured debts first, then unsecured.