I have a grandmother who is 89 that I've been taking care of in her home for the past 6 years. I am her DPOA and recently had to put her into an assisted living facility due to her progressive Alzheimers/Dementia. She has her own house that I've been living in with her to care for her and still living in now even though shes in the living facility. She has a few credit cards with outstanding debt on them which now she is unable to pay due to all of her income going to the nursing home. She is currently on Medicaid. She has SS income, retirement from the state of SC and a small pension from my grandfather, who has passed away, being in the military. I'm not sure what to do about the debt she owes on her credit cards. Should I stop paying them? Should I keep paying the monthly amounts? Will it affect her Medicaid if I do just stop paying on her credit cards? The mortgage on her house is going to be paid off within a month and that along with the land the house is own are the only assets that she has. I am wanting to keep the house as that my grandfather built this house and I've practically lived here my entire 36yr life. I need help on what to do!
Your grandmom's SS income cannot be used in any way to collect a debt even if the credit card companies go to court. Your grandmother's credit will be ruined which is a GOOD THING. You need to cancel any credit cards now; your job as her POA.
When your grandmother passes there will be a lien on her home for claw back by the government for monies spent on her for care. There may also be a suit with a lien on her home from credit card companies if they pursue all of this. So pretty much your grandmother's home will be gone for all intent and purpose with paying off liens. The government usually gets paid first.
You have a legal question here and as POA for your grandmother you need to get legal answers. Her money pays for this, so whatever medicaid allowance she has will go to elder law attorney for a while for you to get the answers you need for your state. Be certain you are keeping good records. Be certain that you are not paying bills using your own name meanwhile.
Do understand that as your Grandmother's POA you are LEGALLY responsible for keeping meticulous records of every penny in and every penny out of her assets, and for taxes and all other records.
2) Conversely if the monthly payments are made, then the CC company sees that as a reaffirmation of the debt.
3) OP speaks of her GM already being on Medicaid
4) OP speaks of her GM mortgage being paid off soon….with what if GM is already on Medicaid?
5) OP wants to exercise an exemption from Medicaid recovery in order to retain occupancy of her GMs home.
SC is under the same federal mandate for recovery as all the other states but like all the other states, there are exemptions. OP needs to be sure she has covered her bases..for the best outcome, she needs to see a lawyer and make informed decisions on how she handles each issue in order to protect GM and herself.
I should add though one thing to consider with the credit cards, if they do go into default, the cc companies can sell the debt off to a debt collector who can then take legal action which can ultimately result in property attachment. You really need good legal advice here to see how the laws in your state work with Medicaid, MERP, property.
See an eldercare lawyer immediately.