I have recently cashed a couple of my mother's CDs to pay for her memory care for a few more months. She will have to apply for Medicaid for long term care before she receives the 1099s to report the interest on her tax return.
When applying for Medicaid, she can only have $2,000. She can't hold back funds to pay the tax due. Do I have to pay the tax from my funds?
I guess I should have cashed the CDs last year. I hired an elder law attorney last year that did nothing to advise me. I had to let her go.
Thanks for any experience in this matter.
Do not pay her taxes from your own funds, there's just no need to do that.