Follow
Share

Wondering how many elderly parents help pay for the cost of their care and living arrangements when living in the home of an adult child. If so, how is it done without affecting future medicaid needs.

This question has been closed for answers. Ask a New Question.
The important thing is to keep their funds separate and account for every penny.
Helpful Answer (0)
Report

Medicaid does not expect a participant to live on air. Reasonable costs of room and board are expected. To keep everything clear and easy to explain, have a rental agreement or a room and board agreement or a personal care contract drawn up, spelling out what you provide and what parents pay. You may want to draft something yourself and then run it by a lawyer for suggestions on how to structure it for the best tax advantages.

My mother was already on Medicaid when she moved into my sister's home. She is paying $650/month to my sister -- that is the amount she was spending for her subsidized senior apartment, so it would obviously fit into her budget. If Mom had more income, I think Sister should charge more, since she provides wonderful meals and a lot of personal attention and care as well as lodging. But Mom just doesn't have more.

At this point, if Mom didn't spend her monthly income to the point of accumulating more than $2000 in her bank account, that would be an issue for Medicaid. It just makes sense that she spend her income on her own room and board, to the extent that she can.

As long as you are not charging more than the fair market value of what you are providing, and have good documentation, it will not be a problem for Medicaid.
Helpful Answer (0)
Report

Good idea jessiebelle, but would those expenses be considered taxable to the IRS?
Helpful Answer (0)
Report

Debralee, a good way to handle this is to decide what portion of the utilities, food, and other living expenses the parent will be responsible for each month, then draw up a contract. Each month the parent can pay the child that amount. Everyone has cost of living expenses, so it completely understandable if Medicaid is applied for down the line.
Helpful Answer (0)
Report

Families are wonderful but when it comes to "Who Pays for what" It's important to seek advice on this subject before moving in together. Has the parent accumulated funds, or just living on a government pension.? I am a single pensioner with modest savings. Normally in a retirement home situation, an ingoing bond/fee is required , plus approximately 85% of the elder members pension to cover costs, not including their personal items, eg.. underwear , grooming necessities. I am about to enter into a contract to contribute to the modification of my Daughter and Son-in-law's home in preparation for my tenancy with them, bless their hearts. I have three other children who endorse this action .Hopefully this situation will bring peace of mind to all concerned.
Helpful Answer (0)
Report

It is not unreasonable to expect them to pay for their own food and personal items as well as some utilities. It is also wise to keep good records in case there is ever an issue with look back or family.
Helpful Answer (0)
Report

I'm with her I have same question?
Helpful Answer (0)
Report

This question has been closed for answers. Ask a New Question.
Ask a Question
Subscribe to
Our Newsletter