Last year we took over managing mother's finances because of sudden admission to hospital, then nursing home, and then assisted living. We ended up co-mingling some of her assets and expenses with our own as we scrambled to get everything set up and dispose of her apartment. She has recently been admitted to a nursing home because of declining health and we're starting to get the paperwork together to apply for medicaid for long term care.
Any advice on how to handle the transfer of money last year to our account to pay her expenses? Is there a way to document that for the medicaid application or is it just viewed as a gift to us when the 5 year look back is done?
Should we repay the whole amount transferred to us prior to putting in the Medicaid application or should we just wait until the Medicaid penalty is assessed?
Any advice would be appreciated.