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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.

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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.
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Reply to GardenArtist
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Stock or share certificates are assets. As such you will have to report them.
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Reply to Tothill
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Those 2016 transfers will affect her Medicaid eligibility. Stocks are assets. Anything transferred within the last 5 years will make her ineligible for Medicaid.
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Reply to worriedinCali
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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.
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Reply to NoTryDoYoda
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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.
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Reply to JoAnn29
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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.
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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?
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Reply to qmnpxl
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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.
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Yes and dividends count as income if they are paid out.
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Reply to anonymous972110
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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?
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Reply to RSmith1232
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worriedinCali Dec 11, 2019
They would require the full amount.
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Oh because it’s cash. The house is different. Yeah, forgot that.
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Reply to RSmith1232
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Yes, stocks are, believe me the 5K is but a drop in the bucket for NH care.
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Reply to anonymous912123
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