My 92 year old grandfather has been saving as cash, the unspent portion of his medicaid "personal needs allowance." This money has grown over the past 4 or so years. He has SS and a Railroad Pension that together still qualified him for Medicaid, paying for his assisted living facility. He was private pay in another facility, until he spent down to the $2,000 maximum allowed. My mother, his daughter-in-law by marriage, helps do his bookkeeping, barber visits, etc, as he cannot read or write. He comes from depression era thinking, doesn't want to spend a dime on anything, thinks his money is his money! Since gifts are not to be given, he can't even give it away. My mother often would purchase things for him out of her own pocket, never charging for gas/transportation, etc... (in hind sight, should not have done this, even though it was just easier). She admits this hasn't felt right, and feels she needs to do something about it now. Where should we start (Elder Lawyer, Grandfather’s Medicaid CaseWorker,…) and what repercussions is she looking at?
For mileage reimbursement, prepare a log of dates of the trips. to and from, and mileage for each trip, then multiply by the allowable rate per IRS.
I don't see a need to alarm anyone which might jeopardize his Medicaid eligibility.
You need to get spent down before Medicaid does their audit. Which maybe later in the year. By him some new clothes, shoes, food, toilet paper anything that he needs to live there. As long as 2000 or less is there when they audit I don't think being over at a prior point will mean anything. Just get it spent.