Can I borrow on one of Mom's annuities to purchase a cheaper home for us to live in?

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I'm her DPOA, oldest daughter, and she lives with me now (sold her home 2 years ago and has a decent amount of funds). I lost my medical transcription job in December and now have a home care contract to care for her via her elder care attorney in my home. I'm in the process of selling my home (I'm 60 and owe $30,0000 on the mortgage yet) and today got a very good offer I feel I can't refuse. I want to take that money and purchase a fixer-upper HUD home (total cost $22,000) for which I'm told they need the money up front and right now before proceeding with that. I could not get hold of her lawyer today to present the question to him). I would certainly put the full amount back in mom's account ASAP. Would this in any way affect things with Medicaid down the road and is this do-able? I fully intend to keep mom (who has Alzheimer's) living with me as long as possible and hope to avoid Medicaid anyway if at all possible.

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I'll limit my comments to your question "Would this in any way affect things with Medicaid down the road and is this do-able?"

You mentioned that you have a home care contract to care for your mother which was prepared by her elder care attorney. That's an important document that everyone should consider whenever they are providing care to a family member. You had the foresight to put the contract in place, so that transfers of money to you would be documented and recognized in the future by Medicaid as payments for fair value.

By keeping your mom's attorney updated on what you need to do now with her money, you can get the advice you need to make the transactions work in her best interest.

Using the caregiver contract to structure payments for your work should protect your mother's Medicaid eligibility in the future. Getting legal advice on current practice in your jurisdiction can help you decide how to best structure the house purchase and give you peace of mind that the real estate transaction won't undo what you've already accomplished.
Have decided to forego the HUD house, apparently a pain and I don't have a lot of time to fool around. Should be able to find one that's not HUD or bank owned/foreclosed and pay with my own funds without borrowing anything now. Am waiting for my real estate lady to get back with me to view a couple within my price range shortly. Will have inspections done like I did for the home I own now. Thanks all.
Thanks, Francis. I think my question is too specific, ha-ha. My brother is okay with this (his idea, actually). I will make only $18,900 on the sale of my house and do have another $6000 in my own savings. The deal would not close until April 30, but again, gotta have the check for $22,000 now. I doubt my borrowing would look good on the record but again, hoping to never have to spend down to Medicaid.
Cindy, whew, glad to read you are steering away from fixer-uppers at this stage in your life being a Caregiver. A fixer-upper could be a full-time job within itself. It would be so much nicer to find a great move-in condition home :)
Hopefully, the one I'm wanting will not need much work right now and is livable, will know when we see it tomorrow. I was determined to get out from under my mortgage. Not a lot of choice with the amount of cash I have on hand, but the brother and brother-in-law will check it out for me and can help decide.
Hi Cindy - here is a link that may be somewhat helpful as it leads to other info regarding Medicaid:
https://www.agingcare.com/Articles/asset-limits-to-qualify-for-medicaid-141681.htm


I wouldn't know the details, but if you are able to borrow and return the funds, then the money either goes to the non-countable for medicaid or considered part that needs to be spent down on her care. (within their 5 year lookback on her finances). I'm for sure no expert! You might want to consult with an elder attorney.
What John said!! It's great to have this advise, thank you!!
Cindy, you mentioned you are thinking about buying a fixer-up HUD home... just curious how much fixing up does it need, and are you able to have a home inspection done on the property even if it is for information purposes only. I don't want to see you to get into a money pit with hidden problems.
Good grief, noticed a software issue here, I see the postings are out of order from the time date they were made. Wish the software wouldn't do that, it messes up the answers :(

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