Ok my daddy has dementia. I have had P.o.a for about 3 years. Last few weeks I signed his house in my name and transferred his money to my bank. The problem now is he is getting bad to where I can't take care of him. Is there a way we can insure that the property and money ain't taken by the bank if he has to go to a nursing home
And some how - interestingly enough- in that same last few weeks - his care has become too much for you and you would like to transfer him to a nursing home.
That home does not belong to you. That money does not belong to you. BOTH proceeds should be used to pay for your father's care. You cannot ensure that the money will not be "taken" because it is not your money. He should be private pay using his own funds to pay for his care, until such time as they run out - at which point he can apply for Medicaid to cover the cost.
What you have done is likely criminal. You used your legal designation as POA to profit/benefit from your father's assets. Assets that should be used to pay for his care.
What will happen? The bank isn't going to "take" that money. That's not their purview. What will happen is that you will apply for Medicaid to pay for his care - and THEY will do a 5 year look back (typically) and track his assets. They will look to see that you have transferred ownership of his home and all of his money to your bank and they will require you to pay that back in some way. Either you will have to continue to take care of him until such time as ALL of that money is paid back in care time OR you will literally have to pay that money back, sell his home and use that for his care. They will not give him Medicaid just because he doesn't show any assets now.
The Medicaid divisor differs by state and are subject to change - but let's just use $10,000 a month as an average - https://www.medicaidplanningassistance.org/penalty-period-divisor/
Let's say his home is worth $200,000 and you transferred let's say $50,000 in his account. That would make the total penalty of gifting $250,000 that must be clawed back. That would be divided by the $10,000 (again this is just an example, it varies by state). That would be at least 25 MONTHS that you would have to continue to provide care or pay for his care out of YOUR pocket in order to fix this.
And that is IF you manage to avoid some kind of legal/criminal repercussions for Elder Financial Abuse and misuse of your POA.
You are probably better off continuing to take care of your father or pay for his care out of pocket than to try to protect his property and money for yourself. Who else is it for? That is his money.
It’s pathetic.
You should never co-mingle money. As a POA, Dads finances need to be kept separate. His bank statement will show his money going in and coming out. Now, your going to have a problem separating Dads expenses from yours and proving what money is yours. If you placed Dad on your acct, Medicaid considers it all his money unless u can prove otherwise.
The bank would not take the money or property. Neither will Medicaid or the NH, not by the way you worded it. The house is an exempt asset until death when it becomes an asset that Medicaid can recover money they put out. They don't take the house, they place a lien on it. Which has to be satisfied at time of sale, which the family is responsible for. Dads SS and any pension he receives will go towards his care. If you have been living and caring for him for at least 2 yrs, you may be able to remain in the home by claiming Caregiver allowance. But then you will need to prove you can pay the upkeep on the home.
As said, you now need an Elder Lawyer who is versed in Medicaid law to help u reverse what you have done. He will be able to help you from there and you can use Dads money, I think.
Now you might have 2024 tax implications from this transaction, depending on how much was transferred, plus the value of the house... you gifted both to yourself.
Even though you did this I would now pay some consulting fees to a professional (Accountant, tax attorney, elder law attorney) to figure out how to undo this, if possible.
Also fyi if he ever does qualify for Medicaid, a lien is put on his home which can be cleared by his heirs -- neither the bank nor Medicaid physically takes a person's home. Medicaid rules vary by state, this is why you need a local professional.
I hope that you actually did not do this, Medicaid has a 5 year look back, and you transferred his money and assets to you, this would be considered an attempt to defraud, can carry a jail sentence. Not good.
Might be a good idea to make an appointment with an attorney, like now.
They will provide housing and food for you, and assign someone who understands POA to your Dad. That person will manage his care and his home and money.
Were I you I would consult an elder law attorney this week to see about options and damage control.