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, an acct in my name that I had and added her to as a secondary holder in Jan. 2012

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Smitty you can pay for an attorney out of moms funds after all the services are for her. If she gifted the money in 2007 you would not have to declare it except that you made the mistake of keeping her name attached to it. If it was in yours only then it would be passed the 5 yr look back. But yes anything you do for mim use her money to pay not yours.
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My sister, a medicaid recipient passed away a year ago. I was notified by her employer there is a basic life insurance policy available. Will Medicaid also be notified and will they interfere if i make the claim? The insurance company still has an unclaimed policy in her name. Is there a statute of limitations in which Medicaid must act?
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Smitty3: In general, see an attorney before applying for Medicaid.
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We’ve all heard that it’s better to give than to receive, but if you think you might someday want to apply for Medicaid long-term care benefits, you need to be careful because giving away money or property can interfere with your eligibility.

Under federal Medicaid law, if you transfer certain assets within five years before applying for Medicaid, you will be ineligible for a period of time (called a transfer penalty), depending on how much money you transferred. Even small transfers can affect eligibility. While federal law allows individuals to gift up to $14,000 a year (in 2016) without having to pay a gift tax, Medicaid law still treats that gift as a transfer.

Any transfer that you make, however innocent, will come under scrutiny. For example, Medicaid does not have an exception for gifts to charities. If you give money to a charity, it could affect your Medicaid eligibility down the road. Similarly, gifts for holidays, weddings, birthdays, and graduations can all cause a transfer penalty. If you buy something for a friend or relative, this could also result in a transfer penalty.

Spending a lot of cash all at once or over time could prompt the state to request documentation showing how the money was spent. If you don't have documentation showing that you received fair market value in return for a transferred asset, you could be subject to a transfer penalty.

While most transfers are penalized, certain transfers are exempt from this penalty. Even after entering a nursing home, you may transfer any asset to the following individuals without having to wait out a period of Medicaid ineligibility:

your spouse
your child who is blind or permanently disabled
a trust for the sole benefit of anyone under age 65 who is permanently disabled

In addition, you may transfer your home to the following individuals (as well as to those listed above):

your child who is under age 21
your child who has lived in your home for at least two years prior to your moving to a nursing home and who provided you with care that allowed you to stay at home during that time
a sibling who already has an equity interest in the house and who lived there for at least a year before you moved to a nursing home

Before giving away assets or property, check with your elder law attorney to ensure that it won't affect your Medicaid eligibility.
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Also can we use mom's money to retain an elder care attorney or medicaid specialist to handle the application as part of her spend down?
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Mom gifted the money to me in 2007 and it was used mostly for her care. Will they penalize her for the full amount deposited or will I just have to spend down the remaining amount to the $2000?
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In 2005, The Deficit Reduction Act (DRA) changed the Medicaid asset-transfer rules from 3 years to 5 years. However that does not mean all situations will disqualify. Many states have their own look-back rules (3 to 6 months), as long as everything looks on the up and up then they won't ask for more. It just depends on what state you are in. Texas and Pennslyvania come to mind for the shorter look back as long as everything looks ok.
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I was told by a lawyer to get my Moms name off my disabled nephews account because it can be counted with Medicaid. So we did and put my name on. He needs someone to oversee his finances.
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You will have to be prepared for the 5 year look back. Keep all bank records of under 5 years.
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@lucindaD - so were you able to prove that the joint account was funded solely by you, or did you have comingled activity, with both you and your mother using the account, which of course then would be counted as your mother's asset in the eyes of Medicaid? The original question sounded to me as though the person funded the account and the parent was added in name only... Just making sure I understand. ty!
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The general rule is that joint interests are deemed available to the Medicaid applicant except to the extent that the applicant can prove contribution by the other joint owner(s). So as long as you can prove the source of the funds in the account is yours and not your mother's, it won't be deemed an available asset of your mother's for Medicaid purposes.
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The above responses are correct. My Mother and I have a joint account and during the Medicaid application process the account was considered 100% hers. The funds in the account counted towards the total monies that she held. We had to spend down on necessities that were approved by the Medicaid case worker prior to her qualifying for Medicaid. She is in a nursing home - the social worker at the NH was very helpful with the process. Good luck. Navigating this process on your own isn't easy. I know a lot of responses state to get an elder attorney - I did not, but I worked very closely with the Medicaid case worker, the nursing home and combined with my own knowledge of research and business. It is what you are comfortable with. All the best.
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This will be discovered when a asset verification system check is run. Check with an elder attorney in your state. Advice will probably be that It is best to 1 disclose 2 prove deposits are yours & 3 remove her from the account
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If your mom is listed as an account owner, and her social security number is associated with the account (along with yours) then Medicaid sees this account as 100% her property and it will need to be listed on the Medicaid application along with a 5 year history on the account. This is the unfortunate result of dual owner accounts.

If your mom is simply an authorized signor on the account, and her ss number is not associated with the account, then you do not have to report this to Medicaid.

Angel
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