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Mom is going to an assisted living facility. She is selling her trailer. Going to keep that money in the bank and use as needed. When that is gone she’ll have to apply for Medicaid. Does she have to worry about what she spends it on? Can she take a trip or buy presents for grandchildren?

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Consult with an elder attorney. Funds must be used for her care and none to buy gifts to spend down to Medicaid level.
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Reply to Patathome01
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While informed responses here, it is always prudent to get an attorney specializing in elder law / trusts to ensure you do what is legally required / needed.

Gena / Touch Matters
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Reply to TouchMatters
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It would be a wise decision to consult with an eldercare attorney if your mom has significant assets, needs to establish POA both financial and medical, living will and so forth. The attorney will have knowledge of local and state laws to best protect your mother if the need for Mediciad assistance is necessary. This is an allowable expense and keep all documentation for 60 months (IMO even longer out of caution)

There are threshold amounts that are different state to state and VERY different than Federal tax laws. For example, a person can gift upto $20k and not incur a gift tax. However, Mediciad considers that a non allowed gift and will penalize the patient if done within 60 months (in most states) of needing Medicaid LTC. This is not a DIY situation because it is very complex.

If your mother wants to go on vacation keep all receipts and any address on documentation will need to be her residence. Typically if cash withdrawl is under a certain amount per Mediciad rules it will not need receipts unless it is a consistant withdrawl. So if your mother withdrawls $500 monthly a reciept will need to be documented and submitted to Mediciad.

The assisted living facility will be an allowed expense and statements will need to be supported to Mediciad in the 60 month look back period.
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Reply to AMZebbC
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When she spends that money, she needs to be careful because Medicaid has a "look-back" period where they review her bank records for the last five years. If she gives away large cash gifts or buys expensive presents for grandkids, Medicaid might view that as "giving away assets" and could penalise her by delaying her coverage.
However, she is generally allowed to spend the money on herself, such as for clothes, a pre-paid funeral plan or a modest trip, as long as she receives fair market value for what she spends.
While she can take a trip, it is best to keep receipts to prove she used the money for her own needs rather just giving it away.
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Reply to JakRenden2
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Do the math. How much will she be spending per year in the AL? How much does she have in income and the bank. There is a 5-year look back for Medicaid applications and “gifts” or frivolous spending might interfere with her ability to qualify for coverage when she needs it.
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Reply to ShirleyDot
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Make sure she or family knows how she will qualify for LTC Medicaid because most ALs and MCs are private pay. I cannot forsee her qualifing a jump from AL to full time care in a nursing home. Selling a trailer might just cover her for a year. Then what? A trip for a person who needs AL? How does that work? or gifts? Can someone plan out her expenses vs income for the next few years?
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Reply to MACinCT
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You really need to talk with a lawyer. You can't undo things when it is too late.
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Reply to JustAnon
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The trailer must be sold at Market Value. You really should consult with a Elder Lawyer.
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Reply to JoAnn29
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If you are planning on applying for Medicaid, it's not a good idea to make any gifts. She should use this money for her needs only. By doing this you will keep the Medicaid application process clean and simple, which, believe me, is what you want.

Make sure you keep receipts.
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Reply to Hothouseflower
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If you are not her PoA then I would strongly recommend you and she consult with an elder law attorney to understand the landscape and get her legal ducks in a row so that "whoever" helps her *legally* manage her finances won't screw it up so that any Medicaid application is not delayed or denied due to lack of understanding. There's lots to know when managing a senior's finances. Don't go into this with assumptions. There are lots of posts on this forum from regretful adult children who went into this with their eyes closed.
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Reply to Geaton777
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Is mom cognizant ?
If not and you are legally making decisions for her then that is different then her choosing to buy a car for a grandchild.
If there is a possibility that she will have to apply for Medicaid in the next 5 or 6 years I would make no gifts to anyone.
There are a few others that will give you much more information.
Just be careful with any money that is spent.
And I would make sure the place she is moving to will accept Medicaid, not all do.
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Reply to Grandma1954
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