My mother is 91 and is in assisted living and she has dementia. I am her POA. The ALF says she can have no more than $4500 in her bank account. She is on Medicaid. I was able to sell her mobile home for $11K today. With this money, I want to reimburse the $3k my brother and I spent on getting her placed in her ALF (Community fee) and the lot rent we paid until her place was sold. Also, I want to prepay her funeral expenses. There will be probably about $6k left over (after reimbursement and funeral expenses). The ALF says I need to put the money in a trust. Not sure what kind of trust it is or what it would be called. I am not sure how to do that. Since it isn't a significant amount of money, I don't want to spend a lot for a lawyer. Her funeral will be a service with a viewing and then cremation. Then ashes will be buried next to her mother in another state with a marker. I am thinking that maybe I could find a DIY kit for the trust?. After she passes, I am her executor, so then the balance will need to be split between me and my three brothers.
Any guidance would be appreciated. Thanks!
I think Medicaid will allow reimbursement for the 3k Community fee because thats for Mom but iffy on her lot fee. 8k is a cheap funeral. What I would do is go to the Funeral director and ask about putting the 8k into a prepaid funeral trust. He should be able to tell u what is allowed by Medicaid. You spend the money u need for the funeral and whats left goes back to Medicaid. If u don't do this, Medicaid may ask that the money go towards Moms care. 11k would cover maybe 2 months? She goes off of Medicaid, money gets used for her care, then back on Medicaid.
Since Mom is already on Medicaid u can't draw up a trust especially from a kit, I would think. At this point, prepaying her funeral would be the best thing. Medicaid doesn't need to know what ur actually planning. 8k to 11k is not unusual for a funeral. Just don't expect anything for u and brother when all is said and done. If Mom has money in her bank acct, u may be able to get that and any monies in her Personal Needs Acct. (That small amt of money she is allowed from her SS) Please note that the sm amt of money is included in that 4500 mom iscallowed so spend it.