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I am POA for my dad and both he and mom are in a nursing home with Medicaid in Texas. I worked with a Medicaid planner on the application last year but now have a check from selling my dad's car that needs to be properly used as to stay under the $3000 asset limit. I was previously told I have 30 days to spend it down, but wanted to see if anyone else has experience with something similar. I have continued paying the mortgage on their home since my parents went to the nursing home. Can I pay myself back for that expense? The roof needs replaced, and I expect I can use the funds towards that. I am just trying to be careful and not mess anything up with the Medicaid financial eligibility. Thank you for any suggestions/information you can share.

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I strongly suggest you contact an attorney in your state to work with this situation in addition to the local Medicaid coordinator. The Medicaid coordinator can be very helpful. All the information I have been reading above may not apply to your State or particular situation and may confuse the situation. Important--each State has their own specific Medicaid rules.
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Just an FYI, not all Elder Law Atty are interested in helping you, we just spoke with one in Kentucky that had no further input beyond $900., To redo my POA, which was fine to begin with. $3000.,To file Guardianship papers, which you can get from the circuit clerk for free and file for $50 yourself. And lastly $6000. Up front retainer to help with Medicaid filings.
Needless to say she charged us $200. to tell us this , no free consultation there. An experience to remember!!
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Why not ask Medicaid what is allowed to spend down money on?
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Jaxsann: Retain an elder law attorney. Please inform the attorney that you hire of the entire discourse you list above, i.e. you need to tell the attorney of the past transactions as well as your future intentions, else you erred (or were 100% correct) in anything that will affect your parents' Medicaid.
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An Elder Law Attorney can help you strategize how to ensure that your parents are well-cared for and that you abide the Medicaid Laws and that you have filed the papers to represent them financially and medically.
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Has anyone mentioned prepaying funeral expenses?

It is a difficult task to take on, but once done, it becomes a real benefit when the time comes.

In my state the funds are safely held until they are used. the way the money is held may vary from state to state.
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get a elder care lawyer. good questions,
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Honestly, you should get with an elder care attorney licensed in your state. I am not following the "both are on Medicaid" and "both are in a nursing home." Is the nursing home placement permanent and have they both qualified for Medicaid Long Term Care coverage which is different from being a general "Medicaid recipient" for health coverage?

Most state assets limits are very low (you mentioned $3K) but the home is part of the assets so I a not sure how they both have qualified for Medicaid Long Term Care coverage? In most cases, the ALL the assets (home, car, IRA funds, anything in stocks, bonds, bank or investment accounts, valuables like artwork, on and on ALL need to be liquidated if both husband and wife are in a qualified Medicaid Long Term Care facility and have applied or are spending down to receive Medicaid Long Term Care coverage.

Because there is a 5-year look back (where the State looks at all transactions over the past 5 years to see if there has been gifting or hiding of assets) and if found, your LO may be disqualified for a period of time. PS "ignorance is not a defense." SO best to get with a licensed elder care attorney ASAP.

In most States -- each is different -- one can "spend down" funds on things other than for their direct care or use: such as pre paying funeral expenses, paying the elder care attorney for his/her work in this planning and application; realtor sales commissions for selling the house and likely other expenses as part of the sale of the home (perhaps for repairs necessary for the sale) but RATHER THAN GUESSING/ASSUMING; best to get actual legal advice. Again, "ignorance is not a defense" and "once something is done, if done wrong, it is WRONG and may impact coverage, qualification or recertification for Medicaid Long Term Care Coverage.

Call you State Bar Assn., the Area Agency on Aging, the nursing home where your parents are now to ask for recommendations for a licensed elder care attorney. Most in this space in a geographic area know each other and your LO's facility likely has several they are familiar with who work with/represent OTHER at the same facility.
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Asset limits changed in July of this year to $130,000. We were in the same position with our aunt trying to qualify her for medicaid in CA when the updated amt for assets changed. Check your state!!
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Absolutely reimburse yourself for paying their mortgage, taxes and anything else. Spend all the money if you need too. Medicaid will want to see an accounting. I did similar for my brother, but it was a number of year's ago. Someone else has suggested your can't reimburse for homestead expenses. My brother was unable to write checks, I paid bills, and reimbursed myself quarterly..... Will have to check the actual law.
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Something I have not seen in any of the responses. The home mortgage that you state are paying. Are you listed as a co-borrower on the loan and are you named on the deed to property? If not, and the lender finds out both Mortgagor's are in a nursing home, they can insist on re-doing the loan to pay off what your parents still owe, or, accelerate the loan amount due according to terms of the loan. Get a copy of the Mortgage Note. Do you know if your state is a lien theory or title theory state. The deed to the home will detail either one. In my state of Florida, it is a title theory state which means the deed is my name as owner, not the lender. If there is a loan amount due, lender first must go thru a process to foreclose on property as it is tied to the property as a lien holder and the lender is first in line to be paid off. Typically, the Mortgage Note and Deed to property are recorded in the public records of the county where the home is located. Speak to a Real Estate attorney.
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Calgal Dec 2022
As long as payments made lender will not intervene. How would they find out? Would not notify the lender as it will only cause issues.
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I went through this with my Dad. One of the things we were able to use for spend down were non-refundable burial policies for both he and my mother.
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Yes if they still have their homestead with the thought that they could “possibly” return then those are approved purchases.
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I️ am in Texas and my parents are on Mediciad and I️ continue to work with eleder attorney for yearly recerts. You can purchase anything for them with the money, cell phones, tv’s etc or use it for their homestead. Repairs for the house are definitely approved. You can’t pay yourself back though. Good luck and that is also correct you have 30 days to spend down those funds.
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Navreswife Dec 2022
Hi libfuller,

My mom and l will be relocating to TX in the next year or two. She is elderly and has dementia. As we will need to find an elder attorney, would you be willing to share your attorney’s information? I would like to know what I need and get the process started before we move.

Thank you
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I talked to my Medicaid planner who filed the application originally last year. She confirmed I can spend down the excess assets and pay the home repairs and also use towards my parents personal needs but I only have until the end of this month since car was sold this month. The negative impact is that they will be considered over resource limit for this month and there may be restitution to be paid. Unfortunately we didn't get rid of the car last year before the application was filed.
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JColl7 Dec 2022
You can select a roofing company or whatever company for the home repairs and get a cashiers check payable to them to get the money out of the account in time. That’s what my lawyer had me do. Of course don’t give the check to the company until the work is done but it gets the money out of the account. Make copies of the checks as proof of how the money was spent down.
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Yeah, I'd like to know this too.
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When on Medicaid, generally, assets may not be used for home upkeep of any expenses related to the home. Are you living there?I

The assets must be spent for their needs. A new roof on a home where they do not live would not comply. New jammies? Slippers? Other clothing? False teeth?
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Jaxsann Dec 2022
I am confused that the assets can't be spent on the homesteaded property. It is still their home so wouldn't that be a qualified expense? I had an insurance check for the roof deposited into their account but paid out on one of their high interest credit cards to keep it under the asset limit at that time. So now I am ready to get the roof replaced using the sale proceeds from the car to basically replace the insurance funds I previously paid out if that makes sense. I didn't realize this would come back to haunt me but then everything with Medicaid has been a huge ordeal so I guess I'm always going to be on the losing end. If I absolutely can't use the funds on the house then I guess my next best option is to prepay funeral expenses. Ugh I am so frustrated.. please if anyone else can offer any insight I really appreciate it.
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bumping your post up...
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