My mother has fairly advanced dementia and can't really do anything for herself anymore. I have been making monthly transfers from my mother's account to mine to reimburse myself for the cost of her care. I have bank statements and invoices showing payments made by me to the assisted living facility she was staying at, as well as for rent and groceries, medications, doctors, etc. since she has been living with me. The amount of the monthly transfers is not even enough to cover what I spend on her care every month.

I'm expecting the 5 year look back period to flag these transfers. I have a signed and notarized financial POA dated before all this begun, but from what I've read, that doesn't matter? I've searched the internet high and low and can't find anything about providing documentation in the form of bank statements, invoices, etc, to justify transfers by proving they were made to pay for someone's care. Does anyone have any experience with a situation like this and know if these types of documentation are going to stop a Medicaid (time) penalty from being incurred? Or do they just look at it at face value and don't care what it was used for? This is assuming no personal care agreement is in place.

Does your POA outline any sort of compensation?

Next, she is paying rent? Are you paying taxes on the money you are receiving? A POA cannot benefit at the expense of the person they are overseeing. Without a care or rental agreement signed by your mom before the POA went into effect, you cannot reimbure yourself. The money you paid for her care was a gift from you to her.

So essentially what you have done is co-mingle funds which is a violation of fiduciary responsibility. Your POA should be revoked for those actions. Any money you received from her would not only be a gift in the eyes of Medicaid but can be considered financial exploitation of an elder. Once POA is in effect, different rules apply.
Helpful Answer (1)
Reply to tacy022

Joann and igloo know some chit, man. Take heed.

Best to you.
Helpful Answer (0)
Reply to Segoline

You transferred monies for AL from her account to yours? Why? Were u paying some of her AL costs?

I liquidated all Moms assets and put them into her account. I paid everything from her account. Reimbursed for items I bought on my credit card and kept receipts.

In my instance, out of 5 yrs of statements Medicaid only pulled 4 a year. So that would narrow down what you need to prove. Your problem maybe paying yourself if there was no contract written up.
Helpful Answer (2)
Reply to JoAnn29
Decaturite86 Feb 24, 2019
I erred in not having a contract because I didn't know about that at the time but I was and am financial/durable POA. The AL cost more than her SS check every month so that's why I paid out of my account and reimbursed what I could. Then she moved in with me and I also pay rent from my account. I don't think of it as 'paying myself', but as reimbursing myself, but don't know if Medicaid will see it that way.
Decaturite86 I may be able to explain it to you.
Helpful Answer (0)
Reply to Wuvsbears

Ask a Question

Subscribe to
Our Newsletter