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I recently sold my home and used the money to pay off a loan that a family member has made to me over the past 4 years to help pay my billsMy child and I are currently on Medicaid and only receive $775 in child support as our total income. I sold our house last month to repay a loan 5 days later that a family member extended to me over the past 4 years, leaving me with less than $2,000.

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If the loan was a legally enforceable one, i.e., a written contract, then using the proceeds to pay down the loan would quickly reduce the home sale proceeds to below $2,000 as you indicated. As such, although the sale of the home must be reported to Medicaid, it will not impact your eligibility if the proceeds from the sale are used to pay off the loan in the same month you receive the proceeds.

If the loan was never properly documented and not legally enforceable, then Medicaid may look at the payoff as a gift, which results in a period of disqualification from Medicaid.
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People who've had to borrow money understand that what you did is completely understandable - even honorable. Yet, it may be against Medicaid rules.

Please don't try to hide this as it could be considered fraud. I'd seek advice from an attorney who knows the Medicaid laws for your state. You may be able to get some pro bono (free) help if you check with your state's attorney's office.

Good luck,
Carol
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How do I legally protect the estate my wife with dementia and I have built over the last 50 years?
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I did a little research and this is what I found. Hope its helpful.
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If your getting regular Medicaid & your kid is on CHIP, then your Medicaid situation will change to whatever you qualify for under ACA (obamacare). I'd suggest you contact one of the new health insurance exchanges set up in your state for ACA to see where you stand for coverage and your premium.

The MERP program rfhendricks mentioned applies only to those 55 and over who get Medicaid for NH or other long term care community based program and have a home.
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Amazing in Florida my greedy, criminal X-sister was draining my mothers money market accounts that had my name on them to buy herself real estate. At the same time she was qualifying my mom for MEDICAID! When this kind of criminal outrageous FRAUD is discovered it is totally 100% covered up by everyone who should've stopped it! FLORIDA IS A KILL FRIENDLY SHELTER FOR SENIORS! SCAM SCAM SCAM HIDE THE MONEY FAST! Oops so busted, Oops so caught! At least 1 Medicaid employee is lousy by either being lazy and not checking those asset figures OR what I suspect is they are working hand and hand with an unethical attorney who is giving each other kickbacks thinking they'll never get caught. The system is over running itself!
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Osmii, you see an Estate lawyer, update your Wills, POA's and Proxies. You establish a Trust if your heirs are less than savvy about finances.
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Some generalists are very good at this. Ask your attorney if he can do this or if he can recommend someone.
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I have a question? My mothers dementia is getting so bad, with med cost increasing we tried to get her on medicaid but a couple of years ago she needed around the clock care from a fall, that and a loan to my brother spent her money down. I never expected the loan to be paid back but even though I had her POA she was still in her correct minds and felt it's her money. The sitters were paid cash with a few receipt books kept. Now she goes over at least 700.00 a month and since I closed her savingings back then and put into checking to pay all this, Medicaid said no unless I had concret documentation and on the cash sitters I don't and pay the one she has now cash. To get one we can afford, they want cash. I'm not really sure what to do at this point. She is on her fifth sitter, the rest quit. my mom can be difficult, a nice way to put it...if this one quits, I can't lose my job and a nursing home is out of the question without medicaid....got any advice?
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rfox - if realistically mom needs to be in a NH, then you need to get mom on Medicaid. You are going to need to get an elder law attorney to work with you on the application. So that mom can show a "pattern of spending" document that can work for Medicaid or a caregiver agreement for you that you use to pay the sitters.

From what you wrote, mom gifted your brother $$, correct? That amount will have a transfer penalty. Sometimes they can be waived and that is another reason why to work with an elder law attorney in this.

About the cash under the table sitters, that just has so many problems. Not just the whole no documentation for Medicaid issue. But if you are not getting paperwork filled out on them, like an I-9 & W-2, there can be IRS and Homeland security issues too. If they are needing cash because they can't have income as it would mess up their unemployment or disability checks or are undocumented, you as their "employer" can be fined for not doing paperwork & tax filings. Also you really don't want a future employer (or your current one) to run a check on you when you are up for a promotion and they find that you have IRS issues or have a inquiry from Homeland Security.

Really get mom's paperwork together and spend some of mom's $ and go to see an elder law attorney to see if they can make some sense of all this. Good luck.
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