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Hi. I am caring for my husband. We are 14 years apart in age and apart from some arthritis I am in good health. I’m 65 and on SSDI (car accident which messed up my spine) and husband is 79 and has just returned from his third trip to the hospital this year for CHF. He seems to be doing okay this time, but I’ve been down this road before with him.
My mom’s house is being sold (closing sometime next month) - and I will receive a third of the net proceeds. It looks like a lot of money to me, but it’s got to last; it’s the only major asset we have. My sister suggested holding the proceeds til my husband gets on Medicaid (if he does; we’re on the bubble, I think) because if my husband has to go into a NH the money will be exhausted in a few years. She is scaring me but maybe she’s right.
Does anyone have any experience to share? I trust my sister entirely. But I don’t want to get her into trouble and I don’t want to get into trouble either. I feel paralyzed with everything else that’s going on.
Thank you.

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DizzyBritches, don't be paralyzed, be informed. When I helped my MIL apply for Medicaid (in MN) they asked for her husband's financial info as well (he was still alive). In MN there is a 5-year "look back" period meaning that, if the applicant does something like signs over an asset to their kids so that Medicaid can't get it (like property, a car possibly) and then 4 years later that person applies for Medicaid, the county can still consider that asset part of that couple's income and they will claw it back from your kids. I'm not an accountant or lawyer but this is a rough idea of what can happen. In some states the look-back is 3 years.

Yes, get good counsel from a specialized professional before doing anything, it will be worth your time and money. If you have enough financial resources to form any sort of inheritance, you probably won't qualify. My Stepfather- and mom-in-law were upside down on their quad home, cc debt in the thousands, had a 15-yr old beater van, no healthcare, no pension, had absolutely no savings or property or investments and their monthly ss barely covered their house payments, no less food, utilities, etc.

You can find the Medicaid form online at your parents' county Health & Human Services website, download it and look it over to get an idea of what they're looking for. My MIL is in a nice facility (LTC) in a Medicaid designated room (meaning it's not private). She gets all the same treatment and attention as everyone else and I'm very pleased with her care.

FYI, in MN you need to reapply for Medicaid every year, so getting your share of the house proceeds after he qualifies may not be a thing you can do. Start tomorrow with some phone calls, set up an appointment to get solid advice and once you know your options you can make forward progress for the best care possible.
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DizzyBritches, each State handles their own Medicaid funds. So it depends on how the State has it set up for remaining spouses.

As for "holding the proceeds".... I am curious what your sister means by that. When a house sells and goes to closing, the equity [after closing costs] you will get your share. Can your sister explain who will be "holding" the proceeds? I never heard of a title/escrow company holding funds in this manner.

As Barb had mentioned, your best bet is to make an appointment with an "Elder Law Attorney" and let her/him explain what is the best route to take. In fact, this type of Attorney can help you and your husband with the maze known as Medicaid.
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You need to engage a Medicaid-savvy Medicaid eldercare attorney. I don't know what "on the bubble" means.
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Do not co-mingle the funds, have them placed in your name only, and yes, I agree with your sister.
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AlvaDeer Jul 2019
I think she can keep these funds separate and not comingled if they are inheritance? But what about the whole community property thing. How confusing all this is. You almost cannot do it without a lawyer, can you?
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