Ralph Robbins
Certified Financial Planner
Ralph S. Robbins, CFP©, is a licensed Certified Financial Planning Practitioner and an Accredited VA Claims Agent specializing in Eldercare Financial Planning. He works everyday helping families in crisis find creative ways to fund long-term care expenses and deal with family financial issues.
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Question
Can my mother still receive my father's social security after she dies?
I am so sorry to hear of your trials and tribulations with the VA. Yours is an unusual case in that it is rare for the process to take... I am so sorry to hear of your trials and tribulations with the VA. Yours is an unusual case in that it is rare for the process to take quite so long. It has been my experience that efficient claim for VA pension benefits is predicated on the application being properly completed and sufficient evidence being submitted with the application. Properly completed and evidenced applications will, again in my experience, be processed in less than 120 days. I know it is frustrating, but you will, eventually, see the funds. see more
Question
My in-laws were both in nursing homes on Medicaid and have passed away. When their estate is sold does Medicai...
The answer will depend on the state in which you live and how the assets in question were titled before your parents demise. In most... The answer will depend on the state in which you live and how the assets in question were titled before your parents demise.
In most states, Medicaid Estate Recovery from a deceased Medicaid recipients estate will be limited to probate assets only.
Some states have broadened their authority to seek non-probate assets as well.
Attorneys are expensive and it would not make sense to run to an attorney to have this question answered. Do a search for "Medicaid Estate Recovery" in your state or call your state Medicaid office. see more
In most states, Medicaid Estate Recovery from a deceased Medicaid recipients estate will be limited to probate assets only.
Some states have broadened their authority to seek non-probate assets as well.
Attorneys are expensive and it would not make sense to run to an attorney to have this question answered. Do a search for "Medicaid Estate Recovery" in your state or call your state Medicaid office. see more
Question
My mom is really comfortable in her nursing home right now. What will we do when all her money is gone?
PirateGal... "Real Advice"? What would like advice on? I have not seen more information regarding elder care on any other site.... PirateGal...
"Real Advice"? What would like advice on? I have not seen more information regarding elder care on any other site. What's really terrific is being able to interact with other caregivers to get what I would indeed call "real" advice from those who are enmeshed in the care giving world everyday. This is a great site and a great forum!
Sometimes it is true that the consequence of lots of input is that responses may not always be entirely accurate or may be just plain erroneous. This can, at times, throw someone trying to find answers off track.
That is why there are experts here to help
Case in point: Qualifying for public benefits has nothing to do with the IRS. Medicaid rules do now require that state agencies look at assets transferred in the past 5 years for those that were transferred after February 7, 2007.
You asked: "What is the real information about the government paying for nursing homes...why is everything secret". It is not that the information is secret; the problem is that the system is complex. Would it be great if it were streamlined and easier to access? Of course. But until that blessed day arrives I believe we must do the best we can with what we have and give each other the best advice possible.
P.S. I love Pirates! see more
"Real Advice"? What would like advice on? I have not seen more information regarding elder care on any other site. What's really terrific is being able to interact with other caregivers to get what I would indeed call "real" advice from those who are enmeshed in the care giving world everyday. This is a great site and a great forum!
Sometimes it is true that the consequence of lots of input is that responses may not always be entirely accurate or may be just plain erroneous. This can, at times, throw someone trying to find answers off track.
That is why there are experts here to help
Case in point: Qualifying for public benefits has nothing to do with the IRS. Medicaid rules do now require that state agencies look at assets transferred in the past 5 years for those that were transferred after February 7, 2007.
You asked: "What is the real information about the government paying for nursing homes...why is everything secret". It is not that the information is secret; the problem is that the system is complex. Would it be great if it were streamlined and easier to access? Of course. But until that blessed day arrives I believe we must do the best we can with what we have and give each other the best advice possible.
P.S. I love Pirates! see more
Question
If my parents are divorced, is my mother entitled to a portion of my father's Veterans benefits?
Daniel... Then they wouldn't be divorced, would they? You are correct in that there may be exceptions. For instance, if the marriage... Daniel...
Then they wouldn't be divorced, would they?
You are correct in that there may be exceptions.
For instance, if the marriage was annulled, she may be eligible.
If the separation or divorce was due to excessive abuse or alcoholism there is also a possibility.
These instances are extremely rare overall and virtually non-existent in the cohort we are dealing with here (especially in attempting to establish circumstances other than annulment).
But you are right, absolutes are nasty things and perhaps should not be used unless they are going in a glass with an olive! see more
Then they wouldn't be divorced, would they?
You are correct in that there may be exceptions.
For instance, if the marriage was annulled, she may be eligible.
If the separation or divorce was due to excessive abuse or alcoholism there is also a possibility.
These instances are extremely rare overall and virtually non-existent in the cohort we are dealing with here (especially in attempting to establish circumstances other than annulment).
But you are right, absolutes are nasty things and perhaps should not be used unless they are going in a glass with an olive! see more
Question
Where can someone who has cataracts live until they get them removed?
I agree, grandmom needs to go to a nursing home. It is simply too dangerous for her to remain home. Try not to get too down on... I agree, grandmom needs to go to a nursing home. It is simply too dangerous for her to remain home. Try not to get too down on yourself...I have had many clients who do very well in nursing homes. Without deceiving her let her know that the situation is temporary and that she needs to work hard in PT so she can leave. Always give her hope.
Once she gains strength she may be able to successfully transition to an assisted living facility. It is doubtful she will be going back home permanently...it will simply too expensive to provide the level of care she will need.
If money is an issue you should look into public benefits immediately. Medicaid will cover the nursing home cost. If you apply by the end of any given month benefits for facility care will be retroactive to the first of the month assuming she is otherwise eligible.
Many states, Florida among and New York among them, have a "transition" program, also covered by Medicaid, to assist those who would like to move from a nursing home to assisted living if they are able. In this instance Medicaid pays a monthly stipend to the beneficiary to help cover room and board.
Was grandmom or her husband a veteran? She may be eligible to receive over $1,000 per month to help defray the cost of nursing home, assisted living, or home care. see more
Once she gains strength she may be able to successfully transition to an assisted living facility. It is doubtful she will be going back home permanently...it will simply too expensive to provide the level of care she will need.
If money is an issue you should look into public benefits immediately. Medicaid will cover the nursing home cost. If you apply by the end of any given month benefits for facility care will be retroactive to the first of the month assuming she is otherwise eligible.
Many states, Florida among and New York among them, have a "transition" program, also covered by Medicaid, to assist those who would like to move from a nursing home to assisted living if they are able. In this instance Medicaid pays a monthly stipend to the beneficiary to help cover room and board.
Was grandmom or her husband a veteran? She may be eligible to receive over $1,000 per month to help defray the cost of nursing home, assisted living, or home care. see more
Question
Question
I am trying to find a free Durable Power of Attorney form to download. Could someone tell me where to find th...
Your state bar association website may also have free DPOA, Health Care Surrogate, and Advance Directive forms. However, as mentioned... Your state bar association website may also have free DPOA, Health Care Surrogate, and Advance Directive forms.
However, as mentioned above, you might be better off spending a few bucks to make sure you have it done right.
I am not a lawyer but I am sure I have examined over 1,000 DPOA's in my career. I would not hesitate to do one myself because I know what I am looking for and what I am doing.
You probably have little experience with such documents and you may be surprised by the "little things" that can trip you up once you try to put the power in effect.
If you shop carefully you should be able to find qualified counsel to do a complete set of estate planning documents (Revocable Trust, Pour-Over Will, DPOA, Health Care Surrogate, Living Will, Advance Directives) for under $700 for a couple ($400 individual).
In the end, though, some form of document is better then NO document (usually). see more
However, as mentioned above, you might be better off spending a few bucks to make sure you have it done right.
I am not a lawyer but I am sure I have examined over 1,000 DPOA's in my career. I would not hesitate to do one myself because I know what I am looking for and what I am doing.
You probably have little experience with such documents and you may be surprised by the "little things" that can trip you up once you try to put the power in effect.
If you shop carefully you should be able to find qualified counsel to do a complete set of estate planning documents (Revocable Trust, Pour-Over Will, DPOA, Health Care Surrogate, Living Will, Advance Directives) for under $700 for a couple ($400 individual).
In the end, though, some form of document is better then NO document (usually). see more
Question
My mom is really comfortable in her nursing home right now. What will we do when all her money is gone?
Once mom's money is gone either family will pick up the bill or you will have to apply for Medicaid benefits. However, spending down... Once mom's money is gone either family will pick up the bill or you will have to apply for Medicaid benefits.
However, spending down all of mom's money and then applying for Medicaid is, simply, bad advice.
What most families don't realize is that although Medicaid may save them from financial disaster, it does not pay for everything... particularly when it comes to items for the comfort of the patient/client.
You do not want your mother remaining in a nursing home without funds to augment what Medicaid will provide (what if mom needs glasses, dentures, hearing aides, clothing, special equipment, etc.?).
Moreover she will be permitted only $35 per month for personal expenses such as hair, etc.
I would advise that you do a search for "supplemental needs trusts" and "pooled community trusts" and learn about how this trust will allow:
1. Mom to qualify immediately for Medicaid.
2. Gift her remaining assets without penalty.
3. Preserve her assets for her own health, maintenance, and welfare.
4. Ensure quality of life while on Medicaid
Going to the social worker at the facility once her money is gone is the worst mistake you could possibly make. see more
However, spending down all of mom's money and then applying for Medicaid is, simply, bad advice.
What most families don't realize is that although Medicaid may save them from financial disaster, it does not pay for everything... particularly when it comes to items for the comfort of the patient/client.
You do not want your mother remaining in a nursing home without funds to augment what Medicaid will provide (what if mom needs glasses, dentures, hearing aides, clothing, special equipment, etc.?).
Moreover she will be permitted only $35 per month for personal expenses such as hair, etc.
I would advise that you do a search for "supplemental needs trusts" and "pooled community trusts" and learn about how this trust will allow:
1. Mom to qualify immediately for Medicaid.
2. Gift her remaining assets without penalty.
3. Preserve her assets for her own health, maintenance, and welfare.
4. Ensure quality of life while on Medicaid
Going to the social worker at the facility once her money is gone is the worst mistake you could possibly make. see more
Question
How can I get paid and take care of my grandmother of whom i am living with?
Regarding the comment from Emily above... Respectfully, I must disagree with Emily's assertion that it is "illegal" to charge... Regarding the comment from Emily above...
Respectfully, I must disagree with Emily's assertion that it is "illegal" to charge a veteran for counsel, advice, or recommendations about obtaining Aid and Attendance Improved Pension benefits or, for that matter, any VA benefit.
While it is true that it illegal to charge a veteran for the physical completion and filing of an application for VA compensation and pension (the "preparation and prosecution" of a claim) before initial denial of that claim, it is perfectly legal, and in fact the VA sanctions, charging for services that include the pre-filing "...review of records, research, and counseling that a potential VA claimant might need."
With respect to charging for the actual completion of the application and the filing of same, the VA states very clearly that charging for the services mentioned above and then preparing and filing the claim on a pro bono basis is perfectly legal and legitimate.
Some feel this is a "gray" area but nothing could be further from the truth...which happens to be that the Chief Counsel of the VA has ruled on this and the facts are as I have stated above.
This may seem like a small distinction but it is a huge one when one considers that a great majority of those offering "free" VA pension assistance are being compensated by providers (such as home health care agencies and assisted living facilities) who ultimately charge the client (with or without disclosure) or, are insurance agents who will only be paid by commission if they sell the veteran or tier family a financial product.
No judgment as to which model is preferable, but those who need advice on these matters should know that fee based consulting is a legal, very viable option and may be less expensive, and perhaps more effective, in a given circumstance (particularly where Medicaid, VA, and personal resources will be combined to provide funding for a continuum of care). see more
Respectfully, I must disagree with Emily's assertion that it is "illegal" to charge a veteran for counsel, advice, or recommendations about obtaining Aid and Attendance Improved Pension benefits or, for that matter, any VA benefit.
While it is true that it illegal to charge a veteran for the physical completion and filing of an application for VA compensation and pension (the "preparation and prosecution" of a claim) before initial denial of that claim, it is perfectly legal, and in fact the VA sanctions, charging for services that include the pre-filing "...review of records, research, and counseling that a potential VA claimant might need."
With respect to charging for the actual completion of the application and the filing of same, the VA states very clearly that charging for the services mentioned above and then preparing and filing the claim on a pro bono basis is perfectly legal and legitimate.
Some feel this is a "gray" area but nothing could be further from the truth...which happens to be that the Chief Counsel of the VA has ruled on this and the facts are as I have stated above.
This may seem like a small distinction but it is a huge one when one considers that a great majority of those offering "free" VA pension assistance are being compensated by providers (such as home health care agencies and assisted living facilities) who ultimately charge the client (with or without disclosure) or, are insurance agents who will only be paid by commission if they sell the veteran or tier family a financial product.
No judgment as to which model is preferable, but those who need advice on these matters should know that fee based consulting is a legal, very viable option and may be less expensive, and perhaps more effective, in a given circumstance (particularly where Medicaid, VA, and personal resources will be combined to provide funding for a continuum of care). see more
Question
My mother suffers is in the first stages of Alzheimer's and has a serious gambling problem. She won't acknowle...
Does your mother have Durable Power of Attorney naming you as potential attorney-in-fact to manage her affairs? Alternatively, does she... Does your mother have Durable Power of Attorney naming you as potential attorney-in-fact to manage her affairs? Alternatively, does she have a revocable trust agreement naming you as successor trustee in the event of her incapacity, cognitive or otherwise?
If not, and if still competent enough to understand and sign such documents I would urge you to do this immediately. Without a document giving you authority to act on her behalf you are going to have great difficulty as this progresses.
If she is not competent to engage in the process of protecting herself then you should seek guardianship as soon as possible.
Trying to get a cognitively impaired person to change any habit, or even acknowledge that a problem exists is foolhardy at best and dangerous at worst.
You must get control of her finances as soon as is practical and the only way to do this is via the options mentioned above. see more
If not, and if still competent enough to understand and sign such documents I would urge you to do this immediately. Without a document giving you authority to act on her behalf you are going to have great difficulty as this progresses.
If she is not competent to engage in the process of protecting herself then you should seek guardianship as soon as possible.
Trying to get a cognitively impaired person to change any habit, or even acknowledge that a problem exists is foolhardy at best and dangerous at worst.
You must get control of her finances as soon as is practical and the only way to do this is via the options mentioned above. see more
Question
How can I get paid and take care of my grandmother of whom i am living with?
VA Basic pension, Homebound pension, and Aid and Attendance pension are tax-free benefits and do not have to be reported as income to HIM... VA Basic pension, Homebound pension, and Aid and Attendance pension are tax-free benefits and do not have to be reported as income to HIM (the veteran).
If, however, he is paying YOU to care for him that is a different matter. If the child or other person only provides caregiving services to the parent or to one person only, and does not provide such services to others, they are considered an employee of the care receiver, not an independent contractor.
As such, the caregiver and the care receiver must pay relevant FICA, FUTA, and income taxes. Its really not that complicated. Go to IRS.gov and all of the relevant forms, instructions are there.
Of course, H&R Block or the equivalent for $75 is not a bad deal for headache prevention. see more
If, however, he is paying YOU to care for him that is a different matter. If the child or other person only provides caregiving services to the parent or to one person only, and does not provide such services to others, they are considered an employee of the care receiver, not an independent contractor.
As such, the caregiver and the care receiver must pay relevant FICA, FUTA, and income taxes. Its really not that complicated. Go to IRS.gov and all of the relevant forms, instructions are there.
Of course, H&R Block or the equivalent for $75 is not a bad deal for headache prevention. see more
Question
My mom bought me a care because my van was too high for her to get into. I have no documentation of this gift....
It was smart of you to ask this question. In some states, a Medicaid applicant is permitted to own one vehicle of any value. In others,... It was smart of you to ask this question. In some states, a Medicaid applicant is permitted to own one vehicle of any value. In others, the value may be limited. The first step is to find out which is the case in the state your mother resides in.
If she is permitted to have a vehicle of any value, and the title to the vehicle is not currently in her name, transfer the title to her. Alternatively, you can give the gift "back" and then have her purchase the car from you. Document everything.
If you are contemplating applying for Medicaid for her then you must deal with this because a $15,000 gift (are there other gifts?) will cause the implementation of a penalty period of ineligibility.
Going forward, always use your mother's money to pay for her purchases. It is just so much easier that way when it comes to application time.
Though an interesting thought, it is unlikely that a "normal" car not fitted with special devices will qualify as "medical expense". In any event, the deduction would not apply to you unless you are responsible for at least 50% of your mother's support. It is similarly unlikely that if the vehicle so qualified your mother would be able to take advantage of any deduction in that she is probably paying little or no income tax as it is. see more
If she is permitted to have a vehicle of any value, and the title to the vehicle is not currently in her name, transfer the title to her. Alternatively, you can give the gift "back" and then have her purchase the car from you. Document everything.
If you are contemplating applying for Medicaid for her then you must deal with this because a $15,000 gift (are there other gifts?) will cause the implementation of a penalty period of ineligibility.
Going forward, always use your mother's money to pay for her purchases. It is just so much easier that way when it comes to application time.
Though an interesting thought, it is unlikely that a "normal" car not fitted with special devices will qualify as "medical expense". In any event, the deduction would not apply to you unless you are responsible for at least 50% of your mother's support. It is similarly unlikely that if the vehicle so qualified your mother would be able to take advantage of any deduction in that she is probably paying little or no income tax as it is. see more
Question
What can I do if I need support from my family and friend but they won’t help and I cannot afford to hire help...
I would suggest that you do a search for your local Area on Aging. Every county in the US has one. This will be your starting point, your... I would suggest that you do a search for your local Area on Aging. Every county in the US has one. This will be your starting point, your "one stop shop" if you will to learn about federal, state, and local services that may be available to you.
Rather than look for money, you may find an easier time finding services. In your circumstances, it sounds like case management, respite, and adult day care will be very helpful and these services can mostly be had at little or no charge through both public, private, and not for profit entities.
If she is eligible or can become eligible she may benefit from Medicaid home and community based services if available in your area. Medicaid will subsidize some expenses leaving more money for other services.
Lastly, if she or her spouse was a veteran she may be eligible for VA Aid and Attendance Improved Pension which will provide her, as a surviving spouse, up to $1056 per month towards her unreimbursed cost of care.
P.S. It is difficult to compel family members to do anything. Everyone has there reasons for being involved or not being involved...some of these issues may go way back to childhood in some instances. I encourage my clients not waste tears and energy trying to get others to do things. Focus on you, your family, and your mother. Reach out to those who have the capacity and willingness to be of service...there are angels out there. see more
Rather than look for money, you may find an easier time finding services. In your circumstances, it sounds like case management, respite, and adult day care will be very helpful and these services can mostly be had at little or no charge through both public, private, and not for profit entities.
If she is eligible or can become eligible she may benefit from Medicaid home and community based services if available in your area. Medicaid will subsidize some expenses leaving more money for other services.
Lastly, if she or her spouse was a veteran she may be eligible for VA Aid and Attendance Improved Pension which will provide her, as a surviving spouse, up to $1056 per month towards her unreimbursed cost of care.
P.S. It is difficult to compel family members to do anything. Everyone has there reasons for being involved or not being involved...some of these issues may go way back to childhood in some instances. I encourage my clients not waste tears and energy trying to get others to do things. Focus on you, your family, and your mother. Reach out to those who have the capacity and willingness to be of service...there are angels out there. see more
Question
What options are available when elderly mother-in-law is asked to leave assisted living facility because of fa...
Unless there truly is medical need or the patient is suffering from dementia I really hate to see nursing home placement for obvious... Unless there truly is medical need or the patient is suffering from dementia I really hate to see nursing home placement for obvious reasons. Unfortunately, as Carol pointed out, it may be the only option if mom's behavior does not improve.
There may be another possibility, though, that you might consider. Assisted living facilities are typically thought of as larger, almost resort style properties. Becoming more common are what have become known as "Adult Family Homes". These are smaller ALFs, typically under 14 beds, where caregiver patient ratios are higher, and care is more intimate. Pricing is similar if not less than larger facilities.
There will be no where near the social interaction, activity, etc., but hey, not everyone thrives in those environments. With more attention and calmer surroundings maybe mom will do better. see more
There may be another possibility, though, that you might consider. Assisted living facilities are typically thought of as larger, almost resort style properties. Becoming more common are what have become known as "Adult Family Homes". These are smaller ALFs, typically under 14 beds, where caregiver patient ratios are higher, and care is more intimate. Pricing is similar if not less than larger facilities.
There will be no where near the social interaction, activity, etc., but hey, not everyone thrives in those environments. With more attention and calmer surroundings maybe mom will do better. see more
Question
How can I get paid and take care of my grandmother of whom i am living with?
As you can imagine, this is a very common scenario and unfortunately there is not much help for those in your circumstances. When... As you can imagine, this is a very common scenario and unfortunately there is not much help for those in your circumstances. When caregivers say or feel they need to be compensated for care they are providing it is usually because they are feeling undue financial hardship, not because they feel they "deserve" to be paid.
At the 10,000 foot level there are really only two programs that may help you. Many states now have a Medicaid Waiver program called "Cash and Counseling" or some variant thereof. When participating in this program the recipient is given more direct control in obtaining services and may, in fact, include payment to a family member as part of their care plan. As Carol suggested, your state's equivalent of Department of Elder Affairs will have information.
The other program that may be of help will only apply if grandmother or her spouse was a veteran. The VA Aid and Attendance Improved Pension will provide cash payment directly to grandmother. With this payment she is free to hire anyone, including a family member for her care.
Lastly, and again as Carol mentioned, local resources can be extremely important. Keep this in mind: it may be possible to replace services you are now spending grandmother's money on with other services that are lower cost or free. Saving cash means more money available for other things like possibly compensating you at least to some degree.
For example, will she qualify for meals on wheels? Does she receive help for her Part B premium (that would save $96.50 per month) is she receiving extra help for prescription drugs (this could potentially save hundreds per month), should she apply for home based Medicaid services which would provide some home care to provide respite for you or give you time to find employment for a few hours per week.
Caring for a loved one in difficult financial circumstances requires creativity and ingenuity. I would also suggest joining a caregiver support group either locally or on line. You will be surprised what you will learn and how common your experience is. see more
At the 10,000 foot level there are really only two programs that may help you. Many states now have a Medicaid Waiver program called "Cash and Counseling" or some variant thereof. When participating in this program the recipient is given more direct control in obtaining services and may, in fact, include payment to a family member as part of their care plan. As Carol suggested, your state's equivalent of Department of Elder Affairs will have information.
The other program that may be of help will only apply if grandmother or her spouse was a veteran. The VA Aid and Attendance Improved Pension will provide cash payment directly to grandmother. With this payment she is free to hire anyone, including a family member for her care.
Lastly, and again as Carol mentioned, local resources can be extremely important. Keep this in mind: it may be possible to replace services you are now spending grandmother's money on with other services that are lower cost or free. Saving cash means more money available for other things like possibly compensating you at least to some degree.
For example, will she qualify for meals on wheels? Does she receive help for her Part B premium (that would save $96.50 per month) is she receiving extra help for prescription drugs (this could potentially save hundreds per month), should she apply for home based Medicaid services which would provide some home care to provide respite for you or give you time to find employment for a few hours per week.
Caring for a loved one in difficult financial circumstances requires creativity and ingenuity. I would also suggest joining a caregiver support group either locally or on line. You will be surprised what you will learn and how common your experience is. see more
Question
If my mom sells her home and uses the revenue to buy a vehicle, are there any restrictions on what type of veh...
Sorry to disagree with other posters, but the answer to your question , without judgment, will depend on what state she lives in. In... Sorry to disagree with other posters, but the answer to your question , without judgment, will depend on what state she lives in.
In Florida and in many other states a Medicaid applicant may own a car of any value as an exempt asset. In other states the value of an exempt automobile may be limited...sometimes to a as little as $7,000.
The answer is yes, you can technically take the proceeds of her home and purchase a car and then apply for Medicaid.
Understand that in most states, too, the home remains an exempt asset as long as an "intent to return" is expressed. In some states it is simply assumed that this is the case at application and going forward and the home, therefore, remains an exempt as a countable asset while the recipient is receiving benefits.
If the home is rented while owned by the applicant, it still may be considered an exempt asset if net income after expenses is used for her cost of care.
The home, whether maintained as a personal residence or an income producing property, may be subject to Medicaid estate recovery if it becomes subject to probate at your mother's demise.
So, if the home is kept, you may want to make sure it is not subject to probate by restructuring the deed (search for "enhanced life estate or "lady bird deed") or by placing the property in a Revocable Living Trust (be careful with the later, however because some states may not give a homestead property tax exemption to property so held).
I did like the comment above with respect to purchasing a depreciating asset. Whereas property values are still depressed, it would make much more sense to try to hang on to the property for the foreseeable future if proper rents can be obtained. see more
In Florida and in many other states a Medicaid applicant may own a car of any value as an exempt asset. In other states the value of an exempt automobile may be limited...sometimes to a as little as $7,000.
The answer is yes, you can technically take the proceeds of her home and purchase a car and then apply for Medicaid.
Understand that in most states, too, the home remains an exempt asset as long as an "intent to return" is expressed. In some states it is simply assumed that this is the case at application and going forward and the home, therefore, remains an exempt as a countable asset while the recipient is receiving benefits.
If the home is rented while owned by the applicant, it still may be considered an exempt asset if net income after expenses is used for her cost of care.
The home, whether maintained as a personal residence or an income producing property, may be subject to Medicaid estate recovery if it becomes subject to probate at your mother's demise.
So, if the home is kept, you may want to make sure it is not subject to probate by restructuring the deed (search for "enhanced life estate or "lady bird deed") or by placing the property in a Revocable Living Trust (be careful with the later, however because some states may not give a homestead property tax exemption to property so held).
I did like the comment above with respect to purchasing a depreciating asset. Whereas property values are still depressed, it would make much more sense to try to hang on to the property for the foreseeable future if proper rents can be obtained. see more
Question
What is the line between independent and assisted living?
Medicaid can be a tremendous benefit throughout your grandmother's continuum of care. Benefits are available for home care and... Medicaid can be a tremendous benefit throughout your grandmother's continuum of care. Benefits are available for home care and assisted living facilities as well as nursing homes. in fact, in Florida she may be able to obtain a Medicaid waiver that will pay her a stipend of up to $1,200 per month towards assisted living care.
Was her husband a veteran? If so, she may be eligible for up to an additional $1,057 per month in VA pension to assist with the same costs of care.
Both VA and Medicaid can be received simultaneously but great care must be taken not to disqualify the applicant from one program while qualifying for the other as the eligibility rules are different for the respective benefit programs.
Is there a financial concern? NOW is the time to explore options. Some will tell you she can only qualify once she has "spent down" all of her assets. This is not the case and it is the worst advice available.
Personal resources can be successfully combined with public benefits to deliver options and peace of mind. If you do not have the time, temperament, or discipline to to deal with bureaucracy then hire some one to help you. It will be the best money your grandmother ever spent. see more
Was her husband a veteran? If so, she may be eligible for up to an additional $1,057 per month in VA pension to assist with the same costs of care.
Both VA and Medicaid can be received simultaneously but great care must be taken not to disqualify the applicant from one program while qualifying for the other as the eligibility rules are different for the respective benefit programs.
Is there a financial concern? NOW is the time to explore options. Some will tell you she can only qualify once she has "spent down" all of her assets. This is not the case and it is the worst advice available.
Personal resources can be successfully combined with public benefits to deliver options and peace of mind. If you do not have the time, temperament, or discipline to to deal with bureaucracy then hire some one to help you. It will be the best money your grandmother ever spent. see more
Question
What is the line between independent and assisted living?
My experience tells me that there can be as many determinants as there are people however there are two risks that almost immediately call... My experience tells me that there can be as many determinants as there are people however there are two risks that almost immediately call for assisted living: 1. Fall risk. 2. Dementia where there is danger to oneself and others.
With regard to your travels, you may wish to hire a home health care agency, geriatric care management agency, or a similar service to check on her in the morning and in the evening while you are away. This way you have established a relationship with a responsible party that can act in your absence if required. It is unfair and unwise to expect neighbors, clergy, etc. to be responsible for her well being. Placing her in an ALF while you are away seems a bit extreme. see more
With regard to your travels, you may wish to hire a home health care agency, geriatric care management agency, or a similar service to check on her in the morning and in the evening while you are away. This way you have established a relationship with a responsible party that can act in your absence if required. It is unfair and unwise to expect neighbors, clergy, etc. to be responsible for her well being. Placing her in an ALF while you are away seems a bit extreme. see more
Question
Am I allowed to have my father pay me a monthly fee to handle all of his financial affairs?
Good comments above. Here are some more: 1. Do you have a Durable Power of Attorney (and Health Care Surrogate)? If so, you are legally... Good comments above. Here are some more:
1. Do you have a Durable Power of Attorney (and Health Care Surrogate)? If so, you are legally empowered to assist your father with all of these matters whether he is competent or not or whether he pays you or not. If you do not, get one ASAP or you will be faced with BIG headaches if Dad becomes cognitively incompetent.
2. Is Dad on Medicaid or do you anticipate applying for public benefits? If so, the comments with respect to gifting are important. The tax issues are not of great importance (to me) but establishing the relationship contractually from a public benefit eligibility point of view is very important. If not handled properly the transactions may cause a stumbling block to eligibility.
3. Do not confuse gifting restrictions with respect to public benefit eligibility with Federal Unified Gift and Estate Exemptions. The amount you are permitted to gift to as many as you wish annually is ONLY with respect to gift tax exemptions and has NOTHING to do with public benefit eligibility. see more
1. Do you have a Durable Power of Attorney (and Health Care Surrogate)? If so, you are legally empowered to assist your father with all of these matters whether he is competent or not or whether he pays you or not. If you do not, get one ASAP or you will be faced with BIG headaches if Dad becomes cognitively incompetent.
2. Is Dad on Medicaid or do you anticipate applying for public benefits? If so, the comments with respect to gifting are important. The tax issues are not of great importance (to me) but establishing the relationship contractually from a public benefit eligibility point of view is very important. If not handled properly the transactions may cause a stumbling block to eligibility.
3. Do not confuse gifting restrictions with respect to public benefit eligibility with Federal Unified Gift and Estate Exemptions. The amount you are permitted to gift to as many as you wish annually is ONLY with respect to gift tax exemptions and has NOTHING to do with public benefit eligibility. see more
My father is in a VA nursing home but his health care is not covered by the VA. He owes about $8,000 after a h...
Do it today because Medicaid benefits are also retroactive to the first of the month if the application is submitted before the end of the month.
If there is an issue qualifying financially you still have some time to seek a remedy for July.
If dad ends up being discharged to home or assisted living be sure to see if he is eligible for the "Aid and Attendance Improved Pension" which will provide a cash payment to help pay for same. see more