My mother, who has moderate Alzheimer's has over one and a half million dollars in assets; her income (government pensions) amounts to over $75,400 a year. My brother and his common law wife are trying to change her present estate plan (revocable trust) and put her assets and income into a pure grantor irrevocable trust and a Miller trust to 'protect' them - in order to qualify her for Medicaid. This sounds like welfare fraud and elder exploitation - hiding her income and making the funds available for 'gifting' to 'beneficiaries'. What do you think I should do?
How did you come to hear of this?
Is she currently in a care facility?
https://www.agingcare.com/articles/how-to-use-a-miller-trust-for-medicaid-eligibility-207367.htm
Has she executed any powers of attorney to give the brother authority to do this? If not, you might consider contacting APS, although I doubt they'd get involved, but you might be able to leverage that refusal to get help somewhere else, such as through an elder law agency within the State, or directly through an attorney who's experienced in family disagreements.
You might also consider hiring an attorney and filing for Guardianship and Conservatorship to once and for all block the attempts of brother and wife to get at her funds.
Do you know if they're working with the same attorney who drafted the Revocable Trust? If so, have you contacted her/him? If not, you might still consider contacting that person to get some advice on blocking the brother's efforts, even including injunctive relief.
After the phone conference, I called Mom's original attorney (the alarm bells went off in my head), and made an appointment - unfortunately he is on vacation for the next two weeks - but will talk to him then and get his opinion. I have though of APS, as this feels like elder exploitation. Mom's estate isn't J.G. Wentworth -- it was set up for her benefit and care...but they don't seem to care.
There could be changes made to her estate plan perhaps to streamline her assets or stretch them out further, or lessen tax liability.....
HOWEVER, Your mom has way way way too much in assets to get financially eligible for Medicaid. Medicaid can require 5 years of all legal, banking and other financial info. That means if mom did something to change her situation before Summer of 2023 - 5 years from now - it would be subject to a transfer penalty Medicaid.
Transfer penalty means she’s ineligible for Medicaid and the sticky is that in order to apply for LTC Medicaid they need to be “at need” both financially & medically so their now needing & living in a facility & are now impoverished. Right now if your mom is kinda OK on her ADLs and still a living in her home somewhat independently even with “moderate dementia” she won’t be eligible medically for LTC Medicaid. Its only when she totally is needing a facility will she be at need medically. And honey dealing with that hot mess will fall you to as your the one living in FL.
At 75k a yr in retirement, that’s about $6250 PER MONTH in income so she can easily afford AL and with her assets can more than afford a NH or MC. Only till she spends down her over a M in assets can she do a Miller for the overage needed IF a Medicaid bed in a FL NH is more than $6250 a mo. Southern states Medicaid programs tend to pay a low daily room & board rate. Like TX is abt $ 172 a day/$5,350 a mo, LA last I checked was $165/$5,100, so if FL Medicaid pays under $6250 a mo, she cannot qualify for a Miller.
Plus she has a home as an asset as well....
Could she do something to reduce or change her assets so she’s more Medicaid compliant for Summer 2023? Yeah totally she could do something with that M+. But it has to be carefully planned out to domino fall with a little risk for mom’s ability to private pay for whatever care level she needs in the future. And planning will depend on more than just $ amounts but her age and medical risks. If there has been no talk of her current health care and likely future needs by your bro & the Jacksonville atty, you need to be proactive in getting whatever done to beyond protect you mom to make sure she has funds to private pay for caregivers in her home or private pay at a nicer facility.
Let us know what happens ok!
I also learned that his pacemaker needs replacing; and that he is worried about the surgery, as the operation didn't go smoothly the first time.
Hopefully this will start a new chapter. Thank you all for your advice... I have good information and resources, in any event. Again, thank goodness for this site.
Congratulations and best wishes for moving forward in a different environment.