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My mom just went into a nursing home. She has dementia and just recently got where she couldn't make decisions for herself. I am her POA. I know I have to keep records of all spending in her name now for Medicaid. Mom is lucky and can support herself for sometime before taking Medicaid. Question- before nursing home I would buy what she needed (groceries,clothes whatever) using my debt card, she has none, and paid myself back out of her bank account that my name is on too. I've been doing this for over a year because it was easier for me. I have never taken anything but what the bill was. If she goes on Medicaid and they look back 5 years would I have to have receipts, I doubt I have, or would I be ok?

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I did this with my Mom too. Each month when her SS came in I reimbursed myself for any out of pocket. I actually wrote myself a check. I kept all the receipts, put them in an envelope and put the check #on the envelope. I was never questioned by Medicaid. Medicaid looks for large withdrawal amounts on Bank Statements.
I don't think you will have a problem but you do need to keep those receipts.
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I was POA for my grandparents along with my father. He was also their trustee (he is an attorney). They lived with me for the last three years of their lives. The first thing we did was meet with an elder law attorney to have her draft up a contract between my grandparents and I. I also met with a certified elder care consultant to do an assessment of the costs related to their care living in my home.

Your situation is different, in that, your mom is now in a nursing home. This is a set amount per month for her to live there. Please remember what the purpose of the look back is. It is not to account for every penny spent, but rather, to ensure that the person that is applying for services has exhausted all of their money/assets paying for their own care. Buying groceries, diapers, medications are all part of daily life. Just make sure your mom is no longer gifting anything to family.

Paying out of pocket to be in a nursing home is expensive, so I wouldn't worry about the past purchases for groceries. Your mom is already illustrating that she is paying for her own care out of pocket. If she needs to make a large purchase now that she is in the nursing home, keep the receipt.

I do suggest you meet with an elder law attorney if you have not already done so.
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First, you don't mention in your profile your mom's state of residence. Are you sure her state's look-back is 5 years? It's not the same in every state.

Make sure you aren't a co-signer with her on any credit cards or loans.

Receipts: it would be most clear if the receipts exactly matched the amounts of any withdrawals or cash transfers, reimbursements that are made (even the dates, if you can reimburse on the same day as the purchase). If you transfer money from acct to acct in the same bank always make a notation that it's for your mom and what it's for.

I have purchased a small scanner and I always scan everything as well as keep a paper file, since I am PoA for elders who live out of state and I don't have to take bulky files with me, digital files are less likely to get lost or misplaced. Make any pertinent notes on the paperwork first, then scan it.

Also, I think in order to manage her SS deposits you must become her Representative Payee which is an additional legal step separate from being financial PoA, but I'm not exactly sure since I haven't had to pursue this yet myself. Others who know will post info.
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If you used your debit card - did you make these purchases separately from your own shopping?
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suzieQw Apr 2021
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I always wish there was a good and simple book out there for POA. I had such a steep learning curve myself when I took on Trustee of Trust and POA for my brother.
I am not certain if small amounts for groceries would hurt here, and I hope others who know more about medicaid can answer this, but for NOW it is important that you know, before such time as your Mom may need medicaid help, how to move forward. Please see an Elder Law Attorney. Your Mom's money can pay for that as this is in the interest of her estate.
You need to start now to keep meticulous records. Your name should be on your Mom's accounts really only as POA. You should pay her bills, whether written to you or anyone else, with receipts kept in folders designated say for "insurance", "utility bills", "groceries" or anything else. You should repay yourself only with proof of receipt and should pay yourself from your Mom's account, check written in "her name" by "your name as POA".
Monthly records of ALL assets INTO accounts and all assets OUT OF ACCOUNT should be meticulous. Diary should be kept of anything involving your help, care, fiduciary actions for your Mother. Tax records should be kept.
There in information online.
It is time to learn NOW how to move forward. I don't know what state you live in but the lookback will be between 2 1/2 years and 5 years. You should keep in file all of your Mom's account records and keep them in a folder with any notations on her expenses. In other words keep these records as tho the certainty of someone accusing you of fraud is on your doorstep at any moment.
Again, expenses for food and clothing are expected and not unusual. But an amount of 2,000 or 3,000 would/could/may be questioned. And receipts should be there.
I suggest there be no co mingling of names on accounts other than as POA where your Mom's money is concerned. Make an appointment with an attorney to be certain your POA, your check writing on her account, and etc is in good order.
I hope others can answer your specific question about the past actions, as I can only make suggestions for future. My guess is that these small amounts are OK. Medicare can answer your questions as well. But begin today researching "How to keep records as POA".
Good luck and wishing you the best.
Igloo often posts here and may have answers for you. I hope so.
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Geaton777 Apr 2021
"Medicare can answer your questions as well." I think Alva meant to say Medicaid can answer your questions.
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