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she would like to divide among her four children. Is she able to do this. Or does the check get turned over to the facility where she lives?

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She should be able to give it away, the assisted living home would get it if she keeps it.
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I apologize in advance if this response sounds harsh. Why should the state grant continue to pay for her care now that she has financial resources???????? State grants come from taxpayers dollars. I'm a liberal democrat, not a tea party member and I still feel this way. I support providing financial resources for those who can not afford to pay for their own care. I believe there should be a safety net. But if you have money, you pay your own way not divide it among your offspring.
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First and foremost I understand what you are saying and let me just say . She is receiving a partial grant , remaining monies are coming from pensions and ss(which by the way my parents paid their entire life into... Further any monies received from our deceased father was also set in place for assisted living... So answer to your question NO she is not living off the system. Also none of her children have ever lived off the system. Our parents lost everything many many years ago to heartship and we cared for our parents and continue to do so with our mom who has dementia. You are entitled to your opinion ..I came on this forum to ask a question not to be judged Thank you for taking the time to respond...
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riley101, you read a lot into my response that isn't there. I don't believe that getting assistance when you need it is "living off the system". There should be a system that provides care when people can not afford it. I also believe if you have resources that those resources are used for the care you need. This is the belief I hold across the board and was not intended to point a finger at you or your family.
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Hi Riley, I think your question was just read incorrectly or not clear to the responder. If your Mom is responsible for her AL bill each month then she can do what she wants with money she has inherited. What is often seen is at some point the money runs out and state Medi-Caid comes in. They will look at any money she has inherited and decide if it should be counted toward her assets. What might be best is to make sure her trust/will divides any remaining money as she wants rather than giving out money now. When all is said and done, best to talk to an Elder Lawyer for your Mom's particular circumstances.
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