My mom just sold her house to moved to a skilled nursing facility. If she has to live in a nursing home will they just take all her money?

kerry - Whatever route you take for your mom it will be expensive and she will run out of $ eventually. IMHO what you need to decide is how her care is going to be paid for.......do you & the other family plan on spending all the house sale $ on a facility and when that's gone have her apply for Medicaid OR do you all plan to continue to pay for her privately. If Medicaid is in the plans, then try to get her into a facility that takes Medicaid so you don't have to go thru moving her again. The social worker at the SNF can tell you how they handle this or recommend other places. I've found social workers are better on this than dealing with admissions.

Whatever $ she got from the sale of her home needs to be used for her care & her needs. Because the sale was so recent, it would come up in Medicaid asset review & look-back which can be 3 - 5 years depending on how her state manages Medicaid applications.

Remember for Medicaid for NH, they must show that
1) are 65+,
2) medical condition requires that level of Nursing health care,
3) monthly income is less than her states ceiling +/= 2K,
4) countable assets are less than $2000 and
5) not gifted away anything of value during the spend-down & look-back period.


However, you do have the advantage of where the $ is “spent down” – which means getting her assets (excluding homestead & car) under the state’s Medicaid asset ceiling. You can buy her funeral and burial policy, small term life insurance Whatever they need to be irrevocable NCV. Glasses, dental care (spotty on Medicaid), hearing aids, walkers, clothing suitable for being in a NH. She can own a car. No $ gifted to others but if she went to live in a family members home she could possibly do a personal services contract for managing her care ( I don't think she can do this if she is in a SNF but that's an attorney question). Basically everything must be for their care or property.

All this being said, alot of this depends on what the house sold for. If we're talking
a very modest amount, I would just spend the $ on her care at the SNF &/or NH and apply for Medicaid. If the $$$ is significant then go and see an elder care attorney who practices in the county that she resides in to see what the options are as her state law allows. All these issues are sticky, you'll need to hire an experienced lawyer to help so you don't run into a Medicaid penalty period later on. To begin your search for the best lawyer for the job, contact the local bar association and ask whether it has a lawyer referral service that includes those who specialize in elder law or conservatorships. You can also contact the National Academy of Elder Law Attorneys for a referral to its members in your area.

Also IMHO you should have the following done if you haven't already:
- Durable Power of Attorney (not just POA & not a "springing" DPOA)
- Medical Power of Attorney

- Living Will &/or Advance Directives (DNR)
- Declaration of Guardian in Event of Incapacity

- HIPAA Waiver
(general release one)
- Will or a Living Trust

I'm a firm believer in having an elder care attorney take care of all this. It will not be expensive as most is done by the paralegals. But is invaluable if there should be a problem later on. You do want to go in prepared with what the information is for the documents (e.g. Ann Smith, wife of John Smith, with the info on all the births, deaths & prior marriages) as well as valid ID for the elder. If the decisions have been already made, this should all simple, straightforward paperwork. Should take 1 - 2 hrs for intake & then 1 hr a couple of days later for the signatures to be done.

If mom has assets, then all this should be paid from her assets. This also is important if you ever get challenged. If you pay for all, and you benefit, then other family could go to court to find it a coerced document. Good luck.

Let me first say that nursing homes are EXPENSIVE. Medicare/supplemental insurance doesn't pay for nursing homes. So your looking at least $2000.00/mth just for her to live in a nursing home. Thats for room and board. Usually, things like medication, medical equipment,etc.. are not included and is an additional cost added on. Since your mom just sold her home, she is unable to qualify for medicaid(welfare) which would pay for Nursing home. But, there is a five year look back review of income & assests. I don't know too much how that process works.

I will tell you that a neighbor told me her sister whom needed 24/7 care paid out over $100,000 dollars in 2 years for home care. So you need to plan for costly care before you split money or set aside. The worse thing would be running out of money that was your moms and you will have to pay for living expenses. Just something to think about.

One is able to gift money I think up to $10,000(check irs website) However, if your mom is in a questionable mental status, I would not proceed unless I 'd talk to an elder attorney. If your POA, check your papers. There are limitation clauses. What your able or not able to do. I have Durable POA of mom. However, One thing that is stated that I am not allow to give "gifts". So be careful.

To handle this situation properly, please speak to an attorney.

The rules for rehab (after a minimum hospital stay of 3 days) are that medicare pays full for days 1-20, as long as rehab can show need/improvement. Then days 21-100, medicare pays 80%. If you have secondary insurance, they may pay part of the remaining 20%. You will have to check with them. Same deal, rehab has to show need/improvement.

As posted above, medicare doesn't pay for nursing or assisted living after rehab. You should begin to check out options in your area now while your Mom is being well cared for in rehab. This process took me 3 months of constant looking!

In my area, skilled nursing is over $10,000 ... a MONTH! After a certain number of months some of the nursing homes will take the resident on as medicaid. I found them to be few and far between and frankly, not the nicest ones!

Assisted living runs $7-8,000/month in my area. NONE of the ones I visited take medicaid residents. They all ask for your financial status during the initial meeting!

Current gifting rules are $13,000/per person/per donee a year. But as the previous responder said, before Medicaid pays, they look at 5 years worth of spending. Before you select a nursing home, determine if an assisted living facility would work for your Mom.

The rehab section of the skilled nursing facility told us we would need skilled nursing for my Mom. ($11,900/month at theirs). We checked out a few other choices and one in-take person asked why we were looking at SNFs. She thought my Mom only needed an assisted living (AL). We took her advice and for the past 6 weeks my Mom has been doing fine at the AL ($7100/month) . This helps the resources last longer and in this case it is working fine.

The journey is interesting. My feeling (and my sibs too) is that she and my dad accumulated the money and it should be used for her. The places that take medicaid near me are not places I would want for me or a loved one. Good luck.

I don't know about the state you live in, but in Arkansas, they went back 36 months on my mom's property and assets. In order for her nursing home care to be paid for - (nothing fancy at all about her nursing home) her bill is 5,000./month- she only received a little over 700./month soc. sec. Fortunately, my mom didn't want to stay by herself in her home after my dad died- so she sold the house to live with my uncle about 5 years before she was diagnosed with dementia and 6 months later was in a facility. I am talking about medicaid making up the difference. Her home does take medicaid- not a bad place, older building- but clean, and taken care of.

I think she should ASAP purchase another home as a rental or you should go to an elder law attorney ,its worth it.In Calif. reinvesting is the key.

I do not know where you people live, but my Mom is in a Nursing Home here in New York that costs $450. a day....not different from other Nursing Facilities here. And...NY charges over $700. a month in Room and Board tax. The money goes down very fast. We have a few months before we apply for medicaid....and it will cost us to do that as well. Whatever my Mom needs after she is approved for medicaid, (they allow her $50. per month personal money), I will provide for her. You want your Mom to have the best care...that is the most important factor. We went to an eldercare attorney 9 years ago and had her house put in a life estate. He also did the poa's and the health proxy forms. But she would not allow us to do anything else. Do see an attorney, and get the advice you need in your state.