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My dad is currently in assisted living. He currently is in the spend down period and not eligible for Medicaid right now. But things can change. Health costs are high.


My concern is I owe my dad a few thousand dollars. He made the loan close to three years ago. He and the POA have blocked my attempts to pay it back. Dad is trying to be nice not really understanding that it can complicate things. The POA is concerned about the Medicaid issue. Partly thinking paying the loan back will hurt my dad's eligibility. My amount does not begin to compare to the assets he has. Apparently there is also a chance that my repayment may not be recognized as repayment?


It all seems crazy to me. The POA has an attorney advising that I have to claim the loan as income. I would think Medicaid would frown on that. I would still have to pay it back plus taxes paid on it as income. Along with, I am sure, penalties. I am just trying to figure a way to do this.


About the only idea I come up with is set money aside for if and when Medicaid calls it an issue, since no one is allowing me to act on this


Any suggestions?

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Yes, set money aside in case it becomes a problem with Medicaid.
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Good idea.
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When he loaned you the money, did you draft up paperwork as such? If not, that's probably why the money is in limbo (and also because it is in the 5-yr look-back). As others have voiced, I also agree to just put the money aside. With the blessing of the attorney, you can always use it for other things for him (clothes, travel, holiday gifts to his grandkids in his name, prepaid funeral expenses. etc). The NH will have a resident trust fund for inside purchases that usually allows around $250 max in it (this is what my MIL has) and you can also use the loan money to stock this account and Medicaid can't touch it.
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Unless there was a paperwork done 3 years ago, you kinda can’t draw it up now. Postdated doesn’t work. For it to be look at as valid debt, should have had memo of understanding or Promissory Note signed by both of you &witnessed back in 2016. Notarized too with some verbiage as to terms.

The lending isn’t enforceable. That you want to repay it is awesome. But dad can’t make you.

I bet the concern is IF you right now start paying dad say $500 a mo, it appears as recurring monthly “income” of $500 a mo for him. It shows up in his bank statements (which get submitted to Medicaid as part of the application paperwork) and leads to questions from Medicaid as to just WTF it is. & it increases his “income” which has a set maximum by Medicaid in your state ($2100-2300 range). If he has $ and he’s having to deal with spend down or the atty is doing conversions of assets so he can become impoverished, he doesn’t need loan payment as it makes even more spend down to do. Understand?

Set the $ aside and have it at the ready. Just in case Medicaid places a gifting transfer penalty on it.
You know 3 years is already past the 1/2 way mark for Medicaid look back. If he has assets, he may be finally finally get impoverished enough after your 5 year mark has passed. You can then use the $ to buy him things he needs and can’t afford once on Medicaid. Eyeglasses, new hearing aids, dental work all aren’t covered to any real degree by LTC NH Medicaid. If he should die before this, use $ for a scholarship in his name.
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