My father passed away a few months ago at the age of 80. A few months before he passed away (he was healthy at the time) He and my mother paid off student loans for their grandchildren, and bought me their only child a car. They had struggled financially through my entire childhood and pleaded with me to let them do something for me and the grandkids.
Shortly after Dad died passed away my mother started showing signs of dementia. This is progressing somewhat quickly. Within days after Dad's passing she insisted that I have durable power of attorney for both her finances and healthcare. I suspect she knew things were not going well with her mental state.
Her monthly income is 1,600, her savings approx. 100K. Her house is paid for and also worth about 100K.
She lives an hour away and I can't be there as often as needed. Her Dr. has told her to quit driving. She is desperately pleading with us to let her sell her home, and buy a larger house in the town where we live, so that my husband and I can live with her.
Our house is paid for but tiny, and in the 30 years we have lived in it the neighborhood has gone down to the point it is not worth spending on an addition.
If we can sell our house it will bring very little because of two or three bad neighbors.
My questions are if things progress to the point she needs Medicaid how will all of the above events factor in?
We are willing to take care of her as long as possible, but know that the time may come when we can't. She is already to the point I am not always comfortable with her living alone.
If she uses all of her resources before the five year look back how will the car and student loans my parents gifted affect her eligibility? Also if we sell our home to help care for her will the state lay claim to the house she wants to purchase so that we can live with her?
I do not want her to put a house in my name as there is always the possibility I would pass away before her and she would have no assets for her own care.
One final question. Let's say a senior grandparent has ten grandchildren and decides to give each one a birthday gift of $1,000. Two years later they need ltc/snf. By the end of year four they need Medicaid? Will they be denied because of birthday gifts from four years before?