Does a joint checking account make me responsible for mom's bills beyond content of that account? What about assisted living or nh costs?
My mother is 93 and doing remarkably well. As we all know, however, the weather can change at any moment, and things generally do not improve after 93. Years ago, at her request, we opened a checking account in both our names, so that in the event of emergency or incapacity, I could handle her bills. The money in the account is entirely hers; I have never made a deposit, withdrawn anything, or even written a check.
(She has other accounts and assets, but I am not named as a joint holder on any of the others.)
I know about durable POA, etc.; that is not the question I'm asking, and she's anxious about making any changes to her accounts.
I have a worry of my own, however, so here's my question: should Mom someday need care, does having my name on this checking account open me to liability or financial responsibility for her elder care costs (home care, independent or assisted living, nursing home) if she runs out of money?
10 Answers
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The only debt that I can ever remember mom telling me about was when we were children and she used the ‘lay away’ program at the store during the Christmas season for shopping for gifts. By the time Christmas rolled around and gifts were handed out, all of the money owed was paid.
I was mom’s medical POA. When she did rehab at the nursing home the social worker held a meeting and it was decided that mom should participate a few days longer. Those days were not going to be paid for by Medicare. The bill was sent to me in my name, not my mom’s name. I immediately called the nursing home and said that my mom was the patient, not me and to please remove my name as the responsible party. They sent a new bill in my mom’s name. I used her checking account to pay the bill. So, in my case, having my name on the checking account didn’t matter. The woman in billing at the nursing home told me that I was not responsible for my mom’s bills.
But if you don't have POA you should have her assign you. Why, because of the accounts your name is not on. I was on Mom's checking account. When she became incompetent, as POA I was able to get a printout of all her accts and then transfer the money to her checking to pay for her AL. Its a great tool.
Hopefully Mom is not stubborn but the need for a POA and a Will are important. Otherwise, there is no one to carry out or make her wishes known. The State may step in and make decisions for her. So you need to know where the money is and how much. If Mom needs to be placed in an AL or LTC you need to know what her assets are. Because when the money starts to run out, you need to make decisions. Medicaid would be the main one. In my state, you have 90 days to apply, provide info needed and get the person placed. You want this to happen so when the money runs out, Medicaid is there to pay the next month.
For my Mom, I applied in April, placed her May 1st, private paying May and June. June I confirmed with Medicaid I had provided all info needed and spent her down, Medicaid stated July 1st.
It's also convenient for when mom passes and you have to pay for EOL expenses. As long as everything is on the up and up, I doubt you have much, if anything to worry about.
Still, I spend a half hour with an elder care atty and take copious notes.
A checking account is entirely separate from any bills. You can only be held accountable for her bills if you sign as responsible party.
I would check with the Medicaid for your state about being on the account and that interfering with eligibility, if needed. I think that you would be okay as long as you have never commingled funds or used the account.
I don't think that you need to worry about changing anything.
At this point, I would hope that you know where her will is and who executes it. If you are an only child, then I would leave the joint account alone, but if you have siblings or the will says various people get various amount of money, then it may be a good idea to take your name off of that account so that no one will think that you may have done something that you have not done.
In other words, don't change the other accounts for there is not a need to with you having the Durable POA.
Specific to cash and investments: Most institutions have their own POA form so you could probably do this account by account and just use their form for the POA on a specific account. However an overarching durable POA (by an attorney) would be necessary for you to sell a house or a car for example.
I have had a joint account with my mother for years and was also on Medicaid. It did not interfere at all.
At the time I showed proof of zero income and explained to the caseworker that I was only on her account because she's elderly and it's not my money. They were fine with it.
I was still on Medicaid when my POA for my father went into effect. I had to change all of his accounts and open new ones because his then girlfriend was ripping him off. In order to do this my social security number had to be used to transfer into the new accounts. This didn't interfere with my Medicaid either because it wasn't my money.
Fitzgerald shouldn't have any problems with Medicaid should she need it.