My sister stole my dad's money. What can I do about it?

Asked by olive  |  Jan 1, 2010

As stated in my question I signed admission papers for my Dad in a nursing home. He had a joint CD with my sister and she withdrew the funds in 2009. She refuses to give back the money. I don't know what do do regarding medicaid. I had 37K in a joint CD with my dad which I surrendered. What will happen now. Will medicaid go after her or will I be penalized since I signed the admission papers?

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Ralph Robbins, Jan 4, 2010

Ralph S. Robbins, CFP© is a fully licensed Certified Financial Planning Practitioner specializing in Eldercare Financial Planning. He works everyday helping families in crisis find creative ways to fund long-term care expenses and deal with family financial issues.

 

This is exactly why I recommend AGAINST joint accounts between parent and child. The fact is that once the joint account is created, unless both parties can demonstrate they contributed equally to the account, half of the account well be deemed by Medicaid as an uncompensated gift to the joint holder. Period.

Medicaid does not care about what happened to your father's money. The only thing that is important to them is that the money was there and now it is not and it is now considered a gift.

Medicaid does not "go after money" until the recipient is dead. At death, the state will initiate an estate recovery process and if there are probatable assets they will attempt to recoup the cost of care. If fraud is perpetrated against Medicaid a referral could be made to the states attorney's general office for prosecution but nothing of the sort has occurred here.

It is ludicrous to think that a state agency is going to go running around looking for applicant's money either before or during claim...they just deny benefits if there is any question.

What may happen is that a penalty period of ineligibility will be imposed. I have no idea what the amount in question is, but if it is around $35k as your account was your father could be looking at a penalty of up to 3 or 4 months. (One half the account value divided by your state's medicaid rate = number of months of penalty).

What to do? Forget the lawyer!!! He has no authority and in the end, really no interest. You will pay ridiculous amounts of money and get no result...I promise you!

Instead, call whatever the equivalent is for Adult Protective Services in your state (the Long-Term Care Ombudsman typically only deals with matters between a facility and a resident, not matters between family members and residents so they would be the wrong agency to contact). They LOVE cases like this.

The reason you want to do this is: 1. It will scare the bejeesus out of your sister, 2. It will be a lot easier to have a third party involved instead of he said/she said and you don't have evidence to call in the police. 3. When you apply for Medicaid you are going to ask for a "hardship exception" to the imposition of penalty so you want your story documented. Having it documented as elder financial abuse will help you in your dad's cause.

If, other than this issue your father's assets are spent down, forget about the lawyer when applying for medicaid as well. Let the facility do it. If you need an attorney to handle the hardship issue (which you shouldn't) find one who will bill you hourly without a retainer.

 
 

gebaa00

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Jan 3, 2010

What do you mean that Medicade goes after the money and not the person. If your sister has spent the money, and refuses to give it back, what recourse does the state have if they go after the money and not the person? Very interesting question...would love to hear the answer.

 
 

anonymous11306

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Jan 4, 2010

Your atty is right and I hope he will win. Then, he should go over sister and the judge who should be disbared from practicing law or at least found guilty of breaking the law an given a fine for more than what he and your sister stole from you dad.

We need new laws on the books that will empower adult children of aging parents to take people who do these kind of things to court without the parent being the one who files a complaint?

 
 

Annlidiot

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Jan 4, 2010

RS Robbins -

I am not "virulently" opposed to anything. I stated a fact. Unfortunately the marketing provides the mechanisim for the unscrupulous. I stated that the money is there for the fathers care and should be used that way. You have no idea what I think, you just wrote something because you didn't like what I said and you wanted to promote yourself & your service.

I notice too that you misspoke. A previous poster said medical follows the money - you jumped on that and then backtracked to qualify it as following the money once the person is deceased. You characterized that person's comment as 'ludicrous'. These are fairly strong words - made all the worse by the fact that you are a professional whose business is telling people how to manage their estates. I do not have a chip on my shoulder - I am simply a caregiver who is giving my opinion to Olive who started this thread. We are supposed to be safe and allowed to speak freely without recriminations. Do you have a reason to be on this board - I do not see an Agingcare Expert symbol next to your name.

I am curious though, why as a professional are you contributing to this board? I am not a big fan of being singled out because someone disagrees with me. I am less than impressed when someone stomps on me because they can. I notice that you then segue into a dialog about how YOU could have helped this family. I think you have crossed the line, and the insults are not ok. Please think about the people who participate before you start throwing around judgemental remarks that are hurtful.

 
 

SecretSister

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Jan 1, 2010

Have you considered talking to an Elder Law Attorney?

 
 

olive

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Jan 1, 2010

Yes I hired one right away. As of this date he said to wait till Dad gets out of the hospital to discuss the next course of action. If anybody out there has had a similar situation I would appreciate any input. Many thanks.

 
 

Cat

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Jan 2, 2010

Medicaid goes after the money, not the person. You didn't say what state you are in but most have a 5 year look-back. So if there were assets with your dad's name on them in 2009, they will find them.

I don't know if your attorney disclosed to you what you might do to help yourself in advance. Unless you have unlimited funds, try being direct with him and asking what you might do yourself, versus his office staff or his own time. Tell him you have a budget and want to stick to it. Usually the person who handles the billing in the nursing home, and / or the business manager can give you much info for free.

Has the nursing home already billed Medicaid? If so, ask for advice on disclosure of this CD. The nursing home just wants to be paid, so it is in your and your father's interests to have Medicaid pay the nursing home and recover the money, which they will do if it is disclosed after the fact or discovered on audit. The rate that Medicaid pays is probably less than the daily rate that you signed for on admission. Assuming your dad is not handling his own affairs or is relying on you & your sister for help then the person who filled out the paperwork, or helped him fill out the paperwork to qualify for Medicaid is mandated to disclose any accounts that they are aware of.

Good luck, it will take some work on your part but it will be worth it.

 
 

olive

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Jan 2, 2010

My dad has not yet applied for medicaid. We are in New York by the way. Medicare and his insurance will pay for 20 days in the nursing home which will expire shortly. The home wanted to start the medicaid process. The home is aware of the situation with my dad and my sister. My dad is lucid so I will have him sign the Medicaid application. I don't know what the home does in this situation. I fear they may throw him out. I had signed the admission papers for him to go into the home. I am also afraid that the home will go after me.

 
 

Annlidiot

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Jan 2, 2010

They will not throw him out. If it is his money and he is in the nursing home now, contact the Ombudsman and ask her, on his behalf to guide you on this. If the money is your dads, she is placing him in danger by not turning it over for his care - by attempting to scam Medicaid she is also placing herself in a bad situation with the state government at a time they are really cracking down on all of this "protect your assets" stuff that was marketed to people as a way to qualify for state assistance.

Don't be deceived into thinking that it is somehow your fault and burden. If your dad elected to receive care at home he would still need that money. That is why he worked and saved.

Sad as it is, sometimes money and control show us who people really are. Give some people a little bit of control and they stomp all over others. Give some people a little money to hold & they will show their loyalty really fast.

You seem like a good person - take care & ask that people help you.

 
 

olive

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Jan 2, 2010

Dad was sent to the hospital with chest pains. He has a severely damaged heart and is 87 years old. I just got a letter from the nursing home saying that they will not hold his bed since he is not a medicaid patient and will take him only on the basis of bed availiability. My attorney said we will deal with it when he gets out of the hospital. Thank you all for the input. I will continue to seek advice from you all.

 

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