College trust funds are actually allowed in some states and do NOT affect the Medicaid lookback. It’s a legit way to shield assets. You are also in NY which allows you to have $15k in the bank unlike every other state which allows up to $2k in assets. You need to see a lawyer well versed in Medicaid.
Medicaid has a 5 yr look back in most States. Anything done within that look back is scrutinized. Setting up a Trust within that period of time, will look like money is being "hidden". I also see this as a conflict of interest if the person setting it up is also the POA and grandchild is the POAs child.
Medicaid is for those who have no money. With my Mom, she was private pay before she went on Medicaid. Any money your Mom has needs to be for her care. I can understand that she wants to leave something to her grandchildren but that is not possible when she may need LTC at some point with Medicaid footing most of the bill.
As suggested, see an elder attorney versed in Medicaid. If this isn't done correctly, Mom could face Medicaid penalties and then her care maybe left up to you for a time.
The lookback period is five years. Medicaid won't pay for anything until any money gifted within that period be paid back. Large chunks of money, not typical birthday or holiday gifts to family. An account for a college fund would be a red flag.
As a taxpayer funding Medicaid - not sure i like the thought of grandma getting nursing home ($10K per month approx) when she has funds she wants channeled to granddaughter.
I don't think it is grandma that wants this but the mother of the grandchild. With dementia I doubt the grandmother would be aware of this.. I may be wrong and it is possible with a diagnosis of dementia grandma might be aware, if she is in earlier stages
You really need to talk to an Eldercare Attorney before you do anything. There are Trusts that can be established. But this is something that should be done with the help of an attorney. This might prove to be a problem. I just read your profile and if you are trying to set up the fund or trust for your daughter with your moms assets she already has dementia and can not make decisions on starting a trust or fund. Any trust of fund established now would be seen as a way to "hide" her assets. I might be wrong on this though..again consulting with an Eldercare Attorney is the way to go.
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Medicaid is for those who have no money. With my Mom, she was private pay before she went on Medicaid. Any money your Mom has needs to be for her care. I can understand that she wants to leave something to her grandchildren but that is not possible when she may need LTC at some point with Medicaid footing most of the bill.
As suggested, see an elder attorney versed in Medicaid. If this isn't done correctly, Mom could face Medicaid penalties and then her care maybe left up to you for a time.
There are Trusts that can be established. But this is something that should be done with the help of an attorney.
This might prove to be a problem. I just read your profile and if you are trying to set up the fund or trust for your daughter with your moms assets she already has dementia and can not make decisions on starting a trust or fund. Any trust of fund established now would be seen as a way to "hide" her assets. I might be wrong on this though..again consulting with an Eldercare Attorney is the way to go.