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DanC2020 Asked December 2019

Need some advice on filing for VA long-term care benefits and dealing with a difficult sister who has POA.

This is a long story, but I'll try to keep it short. My dad is 87, getting into the later stage of dementia. He lives in a private assisted facility near my sister in TX (Dallas area). Cost is about $3400/month. He is a Korean War vet, honorably discharged.


My mother passed away last March 09, 2019. She had a car, about 20K in her checking account and $150K from the sale of their home, and another $100K in an IRA. They both lived in an independent facility and had a SS income of about $2700/month. They supplemented their monthly costs with the assets aforementioned.


I had been talking to her about trying to file for my dad's VA benefits and we were making some progress when all the sudden my sister stepped in and said "We're not going to do that" and announced she held durable POA and would be calling all the shots from now on, and that she was going looking into filing for Medicaid, because it pays more.


My mother confirmed that, but with some reservation, even asking me in private if I thought she made the right decision?? I live 500 miles away out of state, and our older brother isn't very well able to handle his own affairs much less theirs. So, I backed off trying to assist, but not without words with my sister. Months pass and my mother passes away. 03/09/2019. My sister then moves my dad into a memory care facility...... this is where it gets interesting.


Fast forward to 12/01/2019, Almost nine months after my mom's passing.


My sister contacts me wanting to discuss my dad's finances. She then tells me he's down to 17K in the account. He makes $1600/month SS and the cost is $3400/month. She says she went to the brokerage bank (Fidelity) to "get more money transferred".... Which sounded odd to me, and low and behold the account is frozen because guess what? ..... My mom established her three grown kids as equal beneficiaries and not my father.


Turns out, my sister knew this in April, when she informed them of my mom's passing and asked to have the account transferred to her account. That's when they told her it's now frozen. She decided to wait eight months before mentioning it to us.


I believe my sister had a scheme to, take control of my parents finances IE, Durable POA, Hide their assets, and file for Medicaid. Turns out she was working with an attorney months before my mom passed, where by she was going to have my mother "invest" her money into my sisters home as part owner... Turns out you can do that. Then my sister would get her money, my parents would be basically destitute and qualify for Medicaid.


But, apparently my mother did not trust her, or decided she wanted the money in her brokerage account and then made us all equal heirs.


So, I have offered to pay the difference with my sister for my dads care, but let my brother keep his money and file for those VA benefits. She still refuses.


So, 1. does this sound familiar, or common? 2. Has anyone had experience filing for VA benefits? 3. any advice on dealing with my sister here? 4. since she is the durable POA for my dad.... what can I do to help with his care/cost? I don't think I can trust my sister at all.


Advice please, and Thank you


 


 

AlvaDeer Dec 2019
Tell your sister that basically this is all in her hands. That you do not have power of attorney. Tell her that if she would like to meet with you and discuss all this to bring ALL HER PAPERS and meet with an elder law attorney to discuss how to move forward for your father; of course she is poa and will paying for this visit out of your father's assets.
This all sounds quite complicated. I would not agree to meet with her under any other circumstances. She wanted it, and she's got it.

BarbBrooklyn Dec 2019
Dan, have you made any progress?

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Lymie61 Dec 2019
While sitting down with an attorney would be wise, the best attorney to sit down with would be the one who has already been working on Mom and Dad's estate but that doesn't sound reliable if even doable so my guess is it will be hard to get much from a new attorney if you can't get any of the detailed financial or legal info. From your description it sounds like perhaps Mom had at least some of her accounts separate from Dad and sister in which case it may not be part of any qualification look back or anything for Dad and I'm not sure I would be so quick to bail your sister out by offering your portion to cover whatever she has decided is best. In truth if she is applying for Medicaid everyone is going to be wiser and better off relying solely on his money because he needs to spend it down anyway and then purchasing "gifts" for him if you want later. Now not knowing the specifics of your dad's state or his and your mom's family finances I may be all wrong on this but you don't want to be kicking yourself later because you didn't tread carefully and check these things out. If your sister wants to control everything and has the power to do so, let her. You have offered advice and help with the leg work but if she is going to shun that and shut you out on any necessary details the mistakes are her's to make and you have no choice but to let her. I wouldn't fight with her I would just offer my assistance and thoughts but not extend myself without some sharing and cooperation on her part. Personally I think she would be wise to get all the information she can about his available VA benefits and what Medicaid would look like to compare the two, can he stay in the facility he's in, what would his monthly income and savings or holdings look like, his medical benefits that sort of thing, how long would it take for each to start etc and the facility he's in is probably a good place to start but if she knows better so be it. She may even have done much of this and just isn't sharing, who knows, maybe she knows she will have to pay something back if he applies for Medicaid because she didn't handle his fiances well and the look back will catch it. All kinds of scenarios but there is no point in you beating your head against a wall if she wont be open with and include you, she's making that bed and the best thing for you to do is enjoy your relationship with your dad and whatever time you can spend with him but I wouldn't just jump into anything financial just because your sister claims it's necessary unless she is sharing info that checks out and supports her claim.
worriedinCali Dec 2019
Lymie.....since they are a married couple, it doesn’t matter if their assets are separate or not. You can’t shield everything in one spouses name in order to cheat the system. Both the VA and Medicaid will not allow it.
BarbBrooklyn Dec 2019
Dan, for whatever reason, your parents chose your sister.

She has all the authority and all the responsibility. If she trashes you to others and you hear about it, you shrug and say, "I've offered my help, but she won't be transparent about the finances".

I'm sorry for your troubles. A consult with a certified elder care attorney is a great idea.

JoAnn29 Dec 2019
Newbie is correct. You cannot have A&A and Medicaid too. Both government entities. And Medicaid is the higher of the two. Dad will only get about 1200 in A&A. So that plus his 1600 will not meet his AL cost.
That 17k will only last another 9 months. And as Dad needs more care, the cost of the AL will go up.

A & A can take a while. The more info you can get on Dad the better. I lucked out that all Dads papers were together. His discharge papers, his paper saying he was entitled to VA benefits. Took all info on income.
But, if it looks like sister is applying for Medicaid and putting Dad in LTC, I wouldn't even start the process.

By the way, unless Moms POA paperwork said "immediate" your sister was not in charge until Mom was found incompetent. Which seems ur Mom wasn't. Your Mom could have revolked sister as POA and assigned someone else. POA is not a guardianship.
FloridaDD Dec 2019
Yes A&A is less, BUT you are allowed to keep more assets, and in the states that limit home health care, if the loved one wants to be at home, but needs help, it can be better.
newbiewife Dec 2019
My understanding of the VA "Aid and Attendance" benefits is that they are geared more to people living in the community than to those in nursing home LTC. My brother in law is currently in LTC and is spending down his assets. He would be eligible for VA aid and attendance benefits, but the nursing home told us Medicaid would be better when the time comes as aid and attendance has an annual benefit cap that is a lot lower than what Medicaid would pay. There are other VA benefits if the person has a service-conected disability, but I'm not familiar with those.
DanC2020 Dec 2019
That's about what my research says.

I was hoping we could file for VA, which would carry him in private care until such time as he might need Medicaid, but it seems my sister just wanted to go straight to Medicaid. She doesn't communicate so it's hard to know.

At this point it does not look like I'm able to get involved anyway. I don't have access to any financial records to file anything, or authority.

It's difficult being on the outside of care giving for a parent, but I feel like I have to do my due diligence and try.
BarbBrooklyn Dec 2019
Was the house in both parents' names or just in mom's? If the house was jointly titled and the assets went solely into mom's brokerage, when half the proceeds should have been dad's, there will likely be a transfer penalty.

https://www.elderlawanswers.com/its-now-harder-for-veterans-to-qualify-for-long-term-care-benefits-16872

anonymous912123 Dec 2019
Watch out you have a schemer on your hands. I would do nothing until a complete accounting is provided to you, dollar for dollar as to where all the money was spent.

If she does not provide this or it shows fraud I would then hire an attorney, and tell her I was doing so.

The house thing is a red flag in itself, at the least she was trying to defraud Medicaid.

I have filed with the VA for my step-father, it is a long drawn out process, takes time, doesn't happen overnight. If the home where your father is takes Medicaid then why not go that route?

Personally, at this time I wouldn't contribute a dime. If he has Medicaid then he should be fine.

gladimhere Dec 2019
Have you sat down with another attorney to ask these questions? It could be that the transfer of mom's assets to sister's house was not legal. Who told you it was? Sis? You know you cannot believe a word she says so you need to see an elder law attorney and find out what their interpretation of the law is.

It could be she wants you to pay out to cover penalties charged to dad as a result of the transfer of assets to sis's house. You really have no idea, do you? Only that something is definitely not right. Fidelity is required by law to freeze an account if they suspect there may be exploitation occurring. Maybe adult protective services somehow got involved? If fidelity was visited by APS as part of an investigation, then unfreezing will have to wait until completion of the investigation.

BarbBrooklyn Dec 2019
What kind of help does sister want, besides asking you to use YOUR money to pay for dad's care?

She has POA for Dad; that makes HER the responsible party for seeing that Dad's care gets paid for from his resources. Tell her that you are glad to help but only after you and she have a sit down with the attorney in question so that you can understand what has transpired up to this point. Cant the lawyer help with filing for VA benefits?

Does SHE realize the facility will not accept Medicaid?
DanC2020 Dec 2019
Not sure. It seems to be just drama.

She'll tell other family members, or whoever will listen, that she does everything, and my brother and I (especially me) are the villains....some how, and we do nothing.

Then when I try to help, offer suggestions etc... she doesn't want to have anything to do with me. It's very frustrating.

She does understand the facility doesn't accept medicaid. She wants me and my brother to pay a third of the cost....she put my dad there, and we don't have any money other than what my mom just left us. I told my brother not to let her manipulate him.
BarbBrooklyn Dec 2019
Also, do you know if mom took her annual RMD before she passed away?

You all may only have until December 31 to figure this out so that you can use your own ages, not mom's to take RMDs from the account that you were beneficiaries for.

Will the inherited monies impact brother's benefits in any way?

For financial questions, I've found www.bogleheads.org to be a great resource.

BarbBrooklyn Dec 2019
Was there a will, and who is executor? Has the will been probated?

Did your parents ever seen an eldercare attorney to arrange their affairs prior to moms passing? In your shoes, that is who I would consult, on your father's behalf.

Sister's POA died with mom. As she is Dad's POA and I assume he is no longer capable of establishing a new one, you might need to look into getting guardianship in order to have any standing to help with his finances.

Will the current facility accept Medicaid or VA payments?

How is it that Fidelity did not contact you to distribute the monies in the IRA account? If they are in a tax deferred account, you all will owe taxes on them when they are distributed. You can all end up paying penalties for not having adequate withholding if the distribution was made during 2019, so I would try to find out about that immediately. Call Fidelity tomorrow.

There are all kinds of ways that a savvy eldercare attorney can make money appear not to be available for payment to a facility. It may be that your sister is working with someone who has/had a legitimate way of doing this. Will she meet with the attorney with you to discuss?
DanC2020 Dec 2019
Thanks Barb.

The Facility will accept VA, not Medicaid. As for the fidelity account, my mother was taking an RMD, and I have satisfied that for all three of us for the year, simply by moving the amount required from the IRA portion she left me, to the individual side.

My sister set the POA up along with the will and all, several years back with my parents. nothing when through probate because the bulk of it was placed in my moms brokerage with us as beneficiaries.

The problem I'm having is with my sister. She does not involve us. Complains saying she does everything and we do nothing. We try to help and she does not let us, and is now trying to tell us we need to use the money our mother left us to pay for my dads care. ???

She has an attorney who set the POA up and all, and tried to set up medicaid via placing my moms assets in my sisters home; a sachem we think was designed to take what little my mom had and get medicaid. something my mom was obviously skeptical about as well.

I'd like to help my sister file for his VA benefits, and split any cost with her, but she is unwilling, yet still insist my brother and I each pay a third. The director at the facility tells me she is working with an attorney. ??? My sister does not tell us anything. She's shady and deceptive.

It's caused a lot of stress. Not sure how to help. My dad is gets around and can speak, but doesn't recognize people. he has a great disposition.
Countrymouse Dec 2019
Sheesh.

I don't think you can trust your sister, either. Not necessarily that she's been scheming to divert your parents' wealth into her own property, but perhaps that she's been too clever by half and apparently made a mess of it. Doesn't really matter, though; the question is now what?

So, what does your sister propose? And has any of this been discussed with your brother? (I wouldn't be too noble about surrendering your own rights while sparing him his. Very sweet of you, but not what your mother thought just.)

I think I'd refuse to lift a finger without full disclosure of exactly what has happened financially from the moment your sister began to exercise her DPOA. You need to know exactly how you got to where you are. But I also think I'd be looking for professional guidance - lawyer, accountant, certified care planner, someone with proven expertise in untangling this kind of situation.
DanC2020 Dec 2019
Absolutely. Thank you.

That's what I was sort of mapping out. I guess I kinda needed to see if I'm thinking correctly.

My sister isn't telling us anything. She tries to give us a guilt trip about not helping and being ....get this..."selfish" with the money my mom left us. She tried to tell my brother that our mother wanted that money to be used for my dads care.

I believe the she basically devised a sachem that backfired on her.
lilhelp Dec 2019
Sorry about your mom, and everything else.

Terrible what your sister did.  Yes, sounds familiar and common.  You're right, don't trust your sister at all.  Sounds like your mom didn't either since she asked you did that sound right and making sure things were set up for all children. 

She got them to make her the durable POA, right? so she should call the VA and ask how to apply, and who can help.  There are those that help without charging and VA accredited agents and attorneys that do charge.  She'll have a lot of paperwork, leg work, deadlines.  You shouldn't use your own money (you'll need it for yourself).

You should consult an elder attorney to ask what can be done to protect your dad and prevent her from taking advantage of him.  She may get him to sign papers that aren't what he or your mom want.
DanC2020 Dec 2019
Thank you.
I am going to visit my dad and brother this Friday.

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