Mom Sells home using funds to live in one side of twinplex owned by Son#3. No housing in Mom's name. She pays taxes for her side. Son#2 loses home and moves in with Mom, puts utilities in his name and pays. Mom has POA set up for all bank accounts. POD.
Moms health declines so Son#2 quits his job to take care of her- no income/savings for him.
Mom begins paying Son#2 a monthly to care for her.
Mom goes on hospice with end of life presenting several times but Mom's a fighter. Son#2 continues to care for Mom, but several years acting as caregiver, 24/7 is taking its toll on him. He has become severely depressed and is not sure how much longer he can continue, so a nursing home is possible. Mom has promised Son#2 her savings for putting his life on hold to care for her.
We are doing everything we can to keep Mom out of a nursing home to preserve her funds.
Our dilemma:
1. Since no caregiver contract, should Mom continue to pay Son#2?
2. Since Utilities are in Son#2 names, is it ok for Mom to pay them?
3. Is there a way to protect the savings account of ~ $50k?
What a hot mess..... you have commingling of income, probably commingling of proceeds of the sale of mom house, caregiver payments without caregiver agreement/tax reporting. And brother sounds like will be unable to be at all
proactive in recreating past expenditures if need be. Imo NOT a DIY, she needs an atty.
And if your response is “we can’t afford an atty”..... really you need to move past thinking this. Your mom’s property sale was recorded to the penny. & Medicaid can do a transfer penalty inquiry on proceeds of the sale and her monthly income from 5 years past. So unless house sale proceeds were all totally spent before June, 2013, it will surface for Medicaid.
National avg for Medicaid room & board is abt $175 day. A transfer penalty on 100k is roughly 570 days based on $175 rate. So if penalty placed that means, mom will be ineligible (even though she is now impoverished and in a NH) for Medicaid to pay until she has private payed for 570 days = over a year in a NH. And private pay will be well over that 50k in savings. She needs an atty, it’s not a diy.
Medicaid has a five year lookback meaning mom’s finances of the last five years will be thoroughly combed over. As son can no longer continue as caregiver, it’s time to break up that dynamic and use her assets to find her the best care. Sadly, promises like hers should never be made, none of us know what the future may hold