Have not applied for Medicaid for Mom yet. My Mom has more assets that is allowed. I am on a joint account with her bank account but I don't contribute to the account, I only write out all her bills. She does have an 401 k account that has beneficiaries in place. Illinois has a 5 year look back but I will need to have more money in bank to cover all her current medical bills and for funeral costs per her request. What to do??
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Does she need care now? Or just planning for the future?
You need an elder care attorney who can advise you and put together a trust to protect her assets, but it will not go into effect for five years.
She can't give her money away. Normal Christmas and birthday gifts are fine, but she can't buy a house or a car for someone else.
If the home she owns is lived in by a family member, Medicaid cannot say it needs to be sold. BUT if it is sold, all proceeds will need to be spent on her care. If she co-owns the home with you or someone else, only her portion of the proceeds will go toward her care. Ownership means whoever is on the deed. Not the mortgage. That doesn't matter.