Ma has mid-stage Alzheimer's and has been living with us for over a year. Someone told me she could be my dependent, however I read somewhere that she would need to be on MY insurance. She has all her own insurance including dental and prescription and some state assistance. If I have her as my legal dependent, wouldn't she lose this? I am looking into becoming her conservator legally as I have already been doing this for the better of 20 years. I have been her POA and health care proxy for almost 10 years. Is there a way Ma could keep all of her own benefits and I could claim her as a dependent? I work full-time for now and have the family insurance through me. I am 57 and Ma might outlive my full-time status.
So in order to claim a dependent, you would have to provide over 50% support, so you claim you support her with more than $28,338 each year out of your pocket.
Oh, and you have to tell Welfare you provide that support on the application.
Tell me, what happens next?
1) That you provide over 50% of his/her support, and that 2) You they live with you at least six months consecutively out of the year ( Jan. 1- July 2). There is a limit on how much they can earn also. They cannot file their own tax return or claim themselves. You can list them as a dependent on your return. It's an extra $3900 for you.
You definitely need to see an elder law attorney. There are many options to compensate you in some way and a lawyer can discuss those with you. Guardianship/conservatorship are different things and since you have POA I do not know what sense it would make to spend the money to attain legal status.
Do you have siblings? Beware, if you start a legal process if siblings do not agree this will most likely become a very expensive proposition. If you are done it solely for tax reasons then there are other ways to claim Mom as a dependent. Again consult a elder law attorney, and before you do anything.
Guardian vs. Conservator: What’s the Difference? Sep 8, 2010 - Robert J. Kulas, P.A.
When it comes to estate planning, the terms “guardian” and “conservator” tend to come up often. There’s sometimes confusion about what a guardian does as opposed to what a conservator does. The two roles are similar but distinct.
A guardian is a court-appointed fiduciary who is responsible for ensuring that the personal, day-to-day needs of a child or incapacitated adult are taken care of. The person whose well-being the guardian is responsible for is called a “ward”. In the case of a child, often the guardian is the primary caregiver, living with the child and fulfilling a parental role. This is not always the case with an incapacitated adult. The guardian of an incapacitated adult is usually in charge of making sure that the ward gets adequate medical treatment and that the ward’s caregivers are doing an adequate job of meeting his or her personal needs.
A conservator, or guardian of the property, on the other hand, is a court-appointed fiduciary who is responsible for managing the financial affairs of a child or an incapacitated adult. The conservator takes care of real estate, manages bank accounts, and handles investments. His or her duties can range from paying bills to buying and selling stocks and bonds to managing rental property on behalf of the ward.
The main benefit of having a guardian or conservator is that the fiduciary is subject to court oversight in fulfilling his or her duties.
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IMCO, beware of the huge paper-work and administration load.