My mom has been on Medicaid for two years and in long-term care since October 2023. She has an outstanding credit card debt with Citibank of ~$19K. I have durable general POA and have been staying in her house (which is in trust). A process server just delivered a civil summons indicating she's being sued by Citibank for the full amount.
It looks like the first step they're requiring is that she complete an "Appearance" form and send it to the Court to indicate she's received the summons and agrees to abide by all relevant regulations.
She's been carrying this debt for a while and the lawyer I hired in 2022 to prepare her Medicaid application/home care waiver actually told me not to do anything about it at the time. I could reach out to her but don't really have the funds to engage her unless absolutely necessary. Hoping someone here has experienced the same issue and might have some advice.
Thanks so much!
"No, a credit card company cannot put a lien on a house that's in a trust. Creditors can't generally take money from a trust unless the nature of the trust, the relationship between the creditor and the trust, and local laws allow it."
And they can't put a judgement on SS. So, consult with a lawyer. It may just mean a letter from him stating that his client is now in a NH on Medicaid with no assets they can place a lien on. Even if they could put a lien on the house, they won't get the money until the house is sold. You are not responsible for the debt.
The company is suing for the debt. There will be a judgement in court. They will win whether she's there or not.
This will result in a lien on any property she holds. At sale of any asset that was hers or hers in trust the lien will be paid.
You say that you are POA.
That's great, but POA has nothing to do with a Trust.
Trustees manage Trusts. If you were made Trustee of Trust then you already manage it but if she remains Trustee of her Trust and Trustor (creator) then you don't manage the trust.
As POA her funds, should she have any, pays for attorney advice. You need to see an attorney. If she has no liquid funds I would STILL get attorney advice here. If there is some irrevocable trust locking up her assets somewhere then that trust may or may not be responsible for these bills and I have zero idea on that. I am assuming as you are POA you may also be her beneficiary, and it is in your best interest to get GOOD LEGAL ADVICE where things like this are concerned.
Wishing you the best of luck in this.