My mom is about to go on MA (a couple month's worth of money left); she is in an assisted living facility. She has a car that one of my siblings has been using while in town and my other (always broke) sibling has indicated he would like to inherit it or get it when it is given up. MA won't allow for my mom to keep it obviously so it will have to be sold. The KBB dealer price is $2,500 and trade-in is $900. If I tell my sibling he can buy it for $900, my other sibling will think that unfair and she should now receive the 'missing' $1,600. (But he'd be hard pressed to come up with 900) Creatively, how can we 'gift' items without hurting my mom's MA eligibility? Could I buy my sibling a piece of furniture they might want that's equal in value to $900 and keep it in my mom's unit until she passes? (she's 93 and in frail health) They're also saying "she promised me that" (ie antiques)(but there's no written record) The county won't care about antique cabinets and lamps, furniture, etc- they will care about a car and it's whereabouts and how it was disposed of. The money will all go away, so what difference does it make if the car is sold for $900 or $9000? I feel like Pooh, "Think think think"
You need to be careful what you do when dealing with Medicaid. I was told that any Will you may consider null and void. Why, because all Moms assets must go towards her care. They need to be listed on the application but a home and car are exempt assets until death when Medicaid recovery gets involved. I would wait to sell that care asking the caseworker what do you use, dealer trade in or private sale. Then what condition is the car in, fair, good or excellent. Ask if getting a dealer estimate would be good? Once you sell it, you have to include the proceeds in the spend down amount. My Moms house was already up for sale so I don't know if it had to be. By not selling it, someone will need to be paying the taxes p, utilities and upkeep.
Medicaid usually only allows a family Caregiver who has lived in the house and taken care of the LO for 2 yrs to remain. A disabled child can remain. But with both, the person has to be able to pay taxes, pay utilities and pay for upkeep. The house cannot be rented without Medicaid knowing. It could be considered income and effect the income cap.
If Mom only has a couple of months of money you better get that application started. In my State you have 90days after applying to spend down assets and get info needed. If Mom is moving out of the AL, you need to know where she will be placed. If this is not done in 90days, you start all over.
My MIL was told when she had her Will drawn up, if she found after the fact there was something she wanted to leave someone, she needed to have a codicil. I know she asked me what I wanted so I assumed she did it. She didn't. We really didn't care, but you should have seen the neighbors who came over making claims. One was her car. I think she told all the grands they could have her car when she died. POAs daughter got it. Was it in writing, husband never asked.
When it comes to the contents of the house. Its been 5 yrs but I don't think the caseworker ever asked that question. Mom did not have anything of value. I gave most of it away and my brother came and got some furniture Mom had. If there are antiques that are worth money, they need to be sold if worth a lot. The car needs to be sold at fair market value. It matters if a car sells for 900 or 9000. It means thats money for Moms care and Medicaid wants you to get what that car and house are worth before they pay anything out for her care. You need to talk to a caseworker, which is free, or an elder lawyer who is not before you do anything with your Moms belongings. If this is not done right, Mom could be penalized. Then you and siblings may either be taking Mom in or paying for her care until the penalty period is done. At this point do not spend any money that is not used directly for Mom. No gifts, no furniture for a sibling.
Don't try to divide things up by, Johnnie wants Moms $500 worth of silver, Jane wants the China thats worth $1000 so what does Johnnie get thats worth another $500. You will drive yourself crazy. Everyone should take what they want regardless of what its worth.
You have to use the private party price which, unfortunately, is the higher of the two.
This works well if the people involved are well behaved. It stops one person getting all the ‘valuables’, and gives an equalisation method. For example, my ex wanted most of our furniture when we split, and I needed more cash. My sisters and I did it slowly with M’s things, and enjoyed talking about our memories as we did it. We know what’s now where, and it is another conversation starter when we visit and see things again.
Your mother can keep her home and a vehicle and still collect medicaid in many states. Medicaid is a joint state and federal government program so rules vary state to state. If you have already applied for medicaid then you will have already filled out the forms with ALL assets that belong to your Mom. After her death there will be claw back, and the executor, whomever is assigned in the will, will again have to sell these things for fair market value, almost certainlly.
Sure wish you the best. Check with your authorities in your state.
Thank you!