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.
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.
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.
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!
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
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.
See All Answers