My moms in rehab, and there is a possibility she could be placed long term in a nursing home if she doesn't improve. Can funds in her bank account be spent, while she is in rehab, for fixing her home,( such as major leaks in the basement and new carpeting), and she still qualify for Medicaid when she applies? Her home is under her name, mine, and my sisters..
But whether it's best to say have moms last 10k paid for new furnace, is difficult to say. Your situation with multiple owners on a single property makes for an additional layer of complexity in all this too.
.? For you? Has the home clearly been in all 3 names and recorded at the courthouse before march, 2010? If not, expect transfer penalty issues on moms application. And expect for all items (utilities, taxes, insurance, repairs) to be reviewed by Medicaid to see if mom ONLY paid her 1/3. If not, then transfer issues on those funds too.
Medicaid allows their homestead residence to be an exempt asset for their lifetime. But they will have no - none -nada - of their $ to ever pay on the home once on Medicaid & in a facility. So think clearly if you & sissy can afford to pay all on the house from now till beyond moms death. I say beyond because the home will be subject to the required MERP estate recovery which is dealt with in probate. Now if you & Sissy have the $$ means and a pretty good sense of humor in dealing with what sounds like a home needing a lot of repairs, then keep the house. But realize you pay on all & have to keep meticulous records on all costs to present in probate & or to MERP to offset Medicaids tally. if you or sissy have been living in the home as full time caregivers to mom, that is an exemption to MERP as well, but you may have to provide documentation as to that need from moms MD or a SW on their letterhead with state license #.
Just what the history is on all this (ownership, caregiving, paying house costs), will be factors in how simple or difficult the house situation could be.
- the elder have to do a copay or SOC (share of cost) of almost all their monthly income to the NH under medicaid rules
- they get a small personal needs allowance (ranges from $35-90 a mo) to pay for things not covered by Medicaid at the NH. For my mom in TX it was $60 and really covers hair salon and some bathing/cosmetics supplies. There will be no house $ from parent and you will pay for clothing replacement, phone, cable or other things needed to have their living situation nicer at the NH
- transfer review. If they sold, gifted or transferred any real property 5 years prior, it will show up and likely trigger a penalty review. All property is in their name and in the tax assessors database which dovetails to state. If the ownership was split just 2 years ago, it's there and penalty issued. Penalty is done by # of days they although now qualified for Medicaid are ineligible for Medicaid to pay the facility.
I hope the paperwork on the house was filed before march, 2010.
- MERP will do an intent to file a claim (or lien) on the property after death. MERP has all sorts of exemptions, exclusions so look to see if any work.
Keeping parents house can work but IMHO you have to be able to afford all on house for the unknown rest of parents lifetime; & be ok on dealing w/merp.