Follow
Share

Our POA hits 5 years Oct for Mom when she is clear from Medicaid taking her home, but it was into 2016 when transfers to us were finished.
Mom and dad had them separately, he passed so we had to transfer his to mom, then mom transferred them to us, but it took a few months.

Find Care & Housing
As far as the house is concerned. Medicaid will put a lien on it, Medicaid’s will not force a sale at that time. ...they will expect to collect to the max of benefits paid out against the sale of the house...whenever the title does change hands.

so, that means that after her death, the estate will want to transfer the title to someone....that is where Medicaid comes in.

The exception is for a relative that lived with her and provided her care for at least 2 years. the house would not need to be sold at that point....but when it does sell, Medicaid will recover as much as they can
Helpful Answer (0)
Reply to Katiekate
Report
JoAnn29 Dec 13, 2019
Medicaid will place a lean on the house they will not take over title. My Moms house was put up for sale and at time of sale, the Medicaid lean was satisfied.
(0)
Report
We are currently spending down brother Iaws assets (my husband is his poa). Brother in law has to pay taxes on his IRA assetsas they are sold, as well as capital gains on sales of stocks/mutual funds.
Helpful Answer (0)
Reply to newbiewife
Report

Since the money from your mother was transferred less than 5 years ago, it will need to be returned to her or she will have to pay a penalty for it being gone. Medicaid does not like people hiding their money.
Helpful Answer (2)
Reply to NoTryDoYoda
Report

Yes and dividends count as income if they are paid out.
Helpful Answer (1)
Reply to anonymous972110
Report

QMNPXL, your question on income producing asserts is a good one.   Assets in REITs, LLCs, joint ventures - all could product income, or losses.    And I don't know the answer and wouldn't even venture to guess.   

You raise some good questions on capital loss and/or gains as well.   I think someone with these kinds of income producing assets is probably in an income bracket that exceeds Medicaid qualification in the first place, but most definitely these are questions for an accountant or elder law attorney versed in Medicare qualification.

Or what can be done is to transfer the assets to someone else well before the elder might need Medicaid.   I saw that done when I worked in that area of law, and found it very, very offensive.
Helpful Answer (3)
Reply to GardenArtist
Report

I’m curious: 

What about an income producing vehicle say for example say a REIT? There’s income that could be directed towards or assigned to medicaid expenses. Seems to me it might be counter productive to cash something like that out (in?). How would Medicaid handle or dictate how that should be handled? 

If it was required to be cashed in (out?) resulting in a cap gain (or loss) who would sustain that G or L? and pay tax on the CG if there was any? 

If one has to do a spend down can money be kept back to pay future taxes? Presumably for only one year (the first year). Are these stupid questions?
Helpful Answer (1)
Reply to qmnpxl
Report
JoAnn29 Dec 12, 2019
Good question. I think that taxes can be deducted at time of cash in. Then a 1099 is sent for tax purposes.
(0)
Report
Sorry, but the info you have received is not correct.

First, Medicaid does not ever take a house. Having POA for five years has nothing to do with them taking it or not. Five years is the look back period. You will be expected to provide 5 yrs of statements. So for you 2015 to 2019. Any large amounts will need backup to prove money was not given as a "gift". If so, it will either have to be paid back or there will be a penalty.

All assets will have to be liquidated. That includes IRAs, 401Ks, bonds, shares, insurance policies with cash value, annuities ect. Those shares u transferred will need to be cashed in and used for her care. You can prepay her funeral. You will need to spend down to the Medicaid cap in ur state, my state is 2k. This 2k can only be used for her. You can private pay till her money is gone then apply for Medicaid.

The house, she is allowed to keep the house but none of her money can be used for upkeep. Her SS and any pension will go towards her care. She will be allowed about $50 a month. Ea. State is different. So, if u plan on selling Medicaid requires u get Market Value. The proceeds will need to go to Moms care. Meaning Medicaid will stop, u will need to spend down again and then Medicaid will start again. If the house is not sold before her passing, a lean will be put on it. It will be satisfied at time of sale. You can not rent the house or have someone move in without permission from Medicaid.

Basically Medicaid is the same in every State but spend down amts can be different as other rules. You may want to sit down with a Medicaid rep and make sure how u need to handle things. I have just tried to give u an overview.
Helpful Answer (1)
Reply to JoAnn29
Report
worriedinCali Dec 11, 2019
But there’s wrong information here too about assets and what has to be cashed in. To be specific, IRAs and annuities. Those actually can be exempt assets, annuities count as income not as an asset and both may not have to be cashed in.
(1)
Report
See 3 more replies
Yes, stocks are, believe me the 5K is but a drop in the bucket for NH care.
Helpful Answer (0)
Reply to DollyMe
Report

Oh because it’s cash. The house is different. Yeah, forgot that.
Helpful Answer (0)
Reply to RSmith1232
Report

Say she had 5,000 in stocks that were transferred the next year to my name, would they require half that amount as if she had a house?
Helpful Answer (0)
Reply to RSmith1232
Report
worriedinCali Dec 11, 2019
They would require the full amount.
(2)
Report
Those 2016 transfers will affect her Medicaid eligibility. Stocks are assets. Anything transferred within the last 5 years will make her ineligible for Medicaid.
Helpful Answer (2)
Reply to worriedinCali
Report

Stock or share certificates are assets. As such you will have to report them.
Helpful Answer (2)
Reply to Tothill
Report

Ask a Question

Subscribe to
Our Newsletter