If Mom's house is in a Medicaid trust and needs repairs, am I allowed to pay for those repairs with her income?
From sources NOT in the trust. We are in the first year of the Medicaid look-back period. Her income outside the trust protection is from SS, pension, investments. She is in a nursing home and we are not prepared yet to sell the house.
I am not clear on how this was all set up. If she transferred the house into an irrevocable trust, and that was counted as a transfer subject to a penalty period if she applied for Medicaid within the next 5 years, then in that case any additional money she spends on the house at this point would be another gift, triggering a new 5-year lookback period for the amount of those additional payments. On the other hand, if family members paid house expenses/repairs out of their own pockets, that would not cause any Medicaid-related problems to your mother, since the trust now owns the house.
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