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E
evander09 Asked December 2019

My mom has Alzheimer's and has been living with me for 1 year. She is still cognizant many times. Should we make financial plans now?

I know that down the road she may get so bad that I will admit her to a Nursing home. I have put her on the waiting list here in SC for a Nursing Home that will accept Self Pay until her money runs out and then transition to Medicaid . The waiting list is 2 years. My mom has 5 old life insurance policies that are whole life. They total about $25,000 if she cashes them out now. My elder attorney advised me that Medicaid will require that I cash them in and to use that money to pay the nursing home and then I will be able to apply for Medicaid. Does anyone have any experience with this? My question is should I cash these policies in and put the money in her account now ...or should I wait until she goes into the facility. Would it be easier now since she is still cognizant to make some decisions now rather than later when the Alzheimer's has taken over her mind. I wish I would have asked the elder attorney or that he would have just told me but I didn't and he didn't.

anonymous912123 Dec 2019
I would do it now, while she is still cognizant. My brother & I have moved my step-father's and my mother's money around, as it was just sitting in a checking accounts, not making anything, we also cashed in all their whole life policies, so that they could make some money on these long paid off insurance policies which were making 0. The more money you make on her money, the longer she can self pay.

There are only two basic ways to make money....Go out and earn it...or...Let your investments earn it for you. Money needs to be put to work.

cwillie Dec 2019
I would wait. I think that a potential sticking point may depend on the type of POA you have, many people on the forum are stymied by "springing" POAs that require the grantor to be officially deemed incompetent, if your mother is willing I would ask for a document that allows you to act as soon as the ink is dry.

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