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Mom is in so-so health, still lives at home with assistance from me and from home health care. Owns home free and clear, and has considerable financial savings. She wants to begin giving some of the money to me to invest for myself, but I'm wondering how Medicaid will view this if she ends up having to go to a nursing home at some point.

Is there some sort of threshold for how much money is allowed to be gifted away? For example, if she gave me $500 a month, would they scrutinize it? Or are they looking for huge dollar amounts?

With regard to the house, it's multifamily and I live in one of the units in exchange for upkeep and paying some utilitii. I had heard that it may be exempt from Medicaid if I've cared for her for the past two years. But, I'm unclear on how they define caring for her... I'm certainly not a doctor or nurse, nor is she legally my dependent. I do drive her around, pick up groceries/medicine and help out around the house in miscellaneous ways.

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Unfortunately, there is no minimum amount that can be gifted to avoid the Medicaid penalty. All gifts made within the five-year period immediately prior to the date your mother applies for Medicaid are added together to figure out her penalty period. The penalty is equal to the total amount gifted divided by your state's average monthly nursing home cost (set by each state annually); that figure is the number of months that Medicaid will not pay for your mother's care (i.e., the penalty period).

The two-year rule you refer to requires that you provide such care for your mother that BUT FOR SUCH CARE she would have needed to move into a nursing home, and such care is provided for at least the two-year period immediately preceding the date your mother eventually enters a nursing home. If you can document that, then your mother can then transfer the home to you without it causing a Medicaid penalty. You should be sure to get a physician's statement to back this up. You must live in the same unit as your mother, not just in a different unit in the same multi-family dwelling.

Others have suggested you have an attorney draw up a Personal Care Agreement, which will permit your mother to transfer money to you in exchange for your care for her. That's a good idea; but remember that those amounts she pays you must be reported as taxable income, on your income tax return.
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If your mother has "considerable financial savings," then why would she need Medicaid to pay for her care? Medicaid is for impoverished people, not for people who've hidden their assets. Beware. If you do go through with trying to transfer the money, you should not do it on your own with advice from the internet. Plenty of people try this and plenty get caught. So, if you hide the money, don't spend it because in all likelihood, you'll have to have it on hand to pay for Mom's care when Medicaid won't. Another option you could consider, if you're looking to preserve your inheritance, is to care for her yourself. Don't ask the government for a handout and they'll stay out of your business. You can keep every penny.
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Yeah, it is a little unfair. Life is a lot unfair, as I suspect you've noticed.

If a 45-year-old goes on an extremely expensive cruise and then at age 49 becomes disabled and needs to apply for Medicaid, the cruise will not have any impact on the application. She spent the money on herself, which is allowed. You might say it is unfair that she gets to apply for taxpayer assistance after spending so lavishly. She might say it is unfair that she got this disabling condition that she never expected and did nothing to cause or deserve.

"Fair" and "unfair" don't seem to have much to do with health issues.
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sirpsychosexy, are you asking if it is possible to lie and not get caught? I suppose so. Not everyone who cheats on their income taxes gets caught either, I suppose. I still wouldn't recommend it.
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I've wondered too about the question of how an elder spends his or her own money and then applies for Medicaid when the money runs out. It doesn't seem right for someone to spend lavishly at the casino or go on a cruise around the world when he should be saving for possible long-term care needs in old age. I agree it seems a little unfair, because any one of us could drop dead tomorrow, and the person might want to enjoy his money while he can. But if people are going to ask others to pay for their care when they run out of money it seems reasonable that they should live frugally and do what they can to make their resources last as long as possible. What do others think? Does Medicaid look at how frugally or how lavishly the senior lived prior to application for assistance? And how far back should Medicaid look? I mean, if a 45-year-old took a round-the-world cruise would that be considered extravagant when the individual is probably decades away from needing Medicaid anyway? I'd like to hear from others on this.
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This question is an insult to society! You want to spend your Mom's money, and
then ask your tax paying neighbors to pick up the tab for her future care. People like you live in a dream world of easy entitlement. The government has no money. They only spend ours. So pay your own way, and forget cheating the rest of us!
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The penalty rules are designed to avoid precisely what you are trying to do. Your mom is blessed to have your support and company, she is also blessed to have savings and income producing propoerty. I assume your parents worked for that and paid their taxes, thereby contributing to society.

You are blessed to not have to go out of pocket to care for your parents, and if you are living rent free, you are doubly blessed. Helping mom is not something you should get a financial reward for. This is not something taxpayers need to support.

Medicare is for the elderly, Medicaid is for the poor. Moving assets to make her eligible is wrong, unethical and may not be legal. DO Not lie in any of the forms!

If I sound opinionated, this hits close to home. My father went through a long time illness, my mother and I paid out of pocket for everything he needed and he wanted. $4600 ramp, $2500 mattress (towards the end he was very uncomfortable in bed, and I was desperate to help him), months of live in help for my mom and dad, 24 hour nursing care in the last few months. When the end neared, dad wanted to leave the hospital, he was going into hospice but the doctor did not want to let him leave because it was obvious my 80 Year old mom could not care for him, and I did not live with them. The doctor was refusing to sign the release, he wanted to move him to the hospice unit, dad wanted to go home. I had to provide a written statement that I was paying out of pocket for his care, Hospice was only going to provide 24 x 7 care at the very end. Trust me end of life expenses can be very high.

The last 3 years of my dads life I spent a lot of time and money on him. I would not take back a penny nor a second. When I took his keys away I provided a weekly Sunday dinner and casino outing an something to look forward to. I took him on vacations. I visited him almost everyday, ran errands Saturday morning, personally changed him and stayed up many nights with him. All while carrying a heavy workload and not wanting to abandon a relationship with a great man.

Please rethink moving your mom's assets and remember they are for her care. Government provided care is a last resort and is never as good as privately paid care. Medicaid NH can be pretty nasty. Being able to live at home is more desirable for many and if your mom has assets, her quality of life is why they should be spent on. Do not work yourself to death as she needs more care, get help, so you can stay strong and remain kind towards her. While others can help you physically care for her only you can provide her mom-daughter moments of happiness, These will be truly priceless.


Bottom line, the taxpayers should not have to pay for the care of a person with assets, and your mom will have a better quality of life with private services than with Medicare provided services.

When your mother passes, you and the others he specifies can worry about the assets. You children will have a beautiful example if family support seeing how you cared for your mother.

Sorry if my words seem tough.

Bless You,
L
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Thanks for your helpful answer, "Isn't Easy". I agree -- if Bill Gates' mother were indigent there is no reason he shouldn't help her out because he is totally able. On the other hand, I read in these blogs about adult children frustrated over their parents' imprudent spending, perhaps even resulting from an undiagnosed dementia, and they are unable legally to do anything about it. I think most adults already help their needy parents as they are able, but looking at today's young people I see that many are struggling in a bad economy, burdened with crushing student loan debt, earning stagnant wages (if they are so fortunate as to be employed) and facing a bleak old age themselves because defined benefit pensions are extinct and 401(k)s just don't provide what people need, given the many years folks live in a state of frail and extreme old age. Long-term care in a nursing home is so incredibly expensive ($70,000 to $100,000 per year) that no ordinary middle class person can afford it. I'd like to see another major government insurance program, similar to Social Security, that would provide long-term care for everyone. We'd all be required to pay into it and it would be there for us if we need it. It would certainly provide a great deal of peace of mind.
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I am confused. If your mother is in good health (dementia-wise), lives on her own (with help running errands, etc.), and has "considerable savings" why are you even considering Medicaid? Medicaid if for people who are truly without funds to pay for their care. Now, if you were to spend all her "considerable savings", then she might qualify for Medicaid, but as the attorney states, that five year period BEFORE is the catch. Just act like a loving daughter, and do all the things she did for you as a child, and stop worrying about the day which might never come. This nurse thinks you have some evil thoughts.
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Wow, it's always amazing how there will be an idiot or two in every cyber-crowd, thinking that they know someone and jumping to conclusions based upon a few paragraphs on a discussion board.

My mother is all about saving money and investing it, and WANTS to give a certain amount to me to invest for the future. She has worked her entire life to save it, and she's not about to check into a nursing home, but wants to do this for me with HER money.
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