Will we get penalized in the Medicaid look-back period, if my mom's credit card is paying for a storage unit that is in my name?

I had the same concern when filing for long-term Medicaid for my mother - applied just recently. We live in NC. When I explained to the Medicaid Specialist my concern, she said that it wasn't a problem - that they are only going to look at large sums of money (2,000 or more) that is deducted from my mother's account. I told the Medicaid Specialist that if there were concerns, I was more than happy to provide my banking statements, but she said it wasn't necessary. With that said, however, I always think it's a good idea to make sure you have access to documentation that illustrates the reason behind the money is being taken out. So, if you have any receipts, even if they are electronic, save them for just in case. Like you, I also have had to rent out several storage units to hold my mother's items. As I continued to parse down her things, I was able to get a smaller storage unit. And that might be something you want to consider - parsing down her items throughout the caregiving journey instead of after she passes.

I don’t think Medicaid will investigate your mother for paying for a storage unit. Medicaid’s focus is on recipients’ income and resources and to make sure those income and resources are within their threshold.

Personally I would not worry abt it. Like you can take photos of the pitiful furniture in it to show it’s hers. That you had to rent it bc you were physically able to be the one who went in person to rent it. It matches up to the timing of the move out too, but I bet it’s not even looked at, it’s more does her payments to credit cards in the past seem to be reasonable.
HOWeVER
Please pls pls be aware that if the plan is for her to move into a NH or MC and she goes onto LTC Medicaid program to pay for this, Medicaid does NOT give a rats butt on her debts. Or that she has any ability to ever pay on her existing debts. LTC Medicaid has a required copay of basically almost all her income to become a SOC aka Share of Cost paid to the facility. AGAIN is Required compliance by Medicaid.

All they get to keep is a smallish personal needs allowance that avg’s $50 or $60 a month for most states. A few states pay the federally required minimum of $30, yes only $30.00 a month. PNA $ is supposed to be used for basic items needed to augment what the State / NH provides. So it’s ok for clothing, shoes, beauty shoppe, toiletries. Or in room cable and phone if not included. Paying for a storage unit doesn’t fall under this AND imho you really don’t want a caseworker asking if the items in it have “value” that might could be sold and that $ is income the month they are sold as far as LTC Medicaid is concerned if they want to be a real stickler on rules. So think about getting whatever in it gone and get her CC monthly bill killed. OR the CC on file changes to one you have and now that monthly bill of $120 is all yours till whenever.

She will default on her CC or any other debts once on LTC Medicaid as the PNA usually gets used up completely just in paying for the at the NH beauty shoppe and a couple of clothing replacements. The copay starts being required the day she files the application. If you are expecting her to pay on her CC, forgetabtit. Either it’s going to be you personally pay off on her CCs or she closed them out and defaults on the balance. It will go to collections but really nothing debt collectors can do.

im guessing it’s not at all easy for you to go and get this done in the near future? Are there zero friends or family who could do this & live there? You may either have to get over there & do this or find a charity who will do this and they get the contents. This is so much why units go up for seizure and auction.

Thanks, AlvaDeer. I am POA, but I didn't think to use that in the stress of dealing with a near-hoarding situation, and also the house had just sold and we didn't want to have to come back (11 hour drive) for the 9th time that year, lol. It was too much stress to take her to deal with signing up for the unit...easier to just quickly run around town to choose one and deal with it, on my own. Then, once I was there, they said it had to be in my name since I was the one filling out the paperwork. She does have credit history I would think, so that's not really a good excuse for us. The unit is $120 a month. I guess we could make a good case that her mental state (middle stage dementia) made it such that we couldn't have her sign up on her own for the unit...but, still, I guess I could have used the POA to do it under her name. Maybe it's best to just get it off her credit card, to be safe. Hopefully we won't keep the unit indefinitely, we'll see.

Yes, I was afraid we may need to just ask an elder law attorney to get a solid answer...but I feel like we have other details figured out, just this one loose end we're wondering about. I haven't seen much about how much Medicaid application workers dig into the types of charges on credit cards.

Are you Mom's POA? Paying for things in this manner brings into focus just such problems. I think, given this is a monthly storage bill that it will not be questioned at all. If it is I think you can explain the reasons that they would not give a locker to a woman without recent credit history, and etc. And it had to be in your name. But it MAY be a problem. In general, amounts such as a few hundred a month monthly is not questioned.

I would see an elder law attorney with your Mom to get good paperwork done, and if you are willing to be her POA and she competent enough to appoint you, find out how to keep the records you will need to keep on this sort of thing.

Good luck.