My in-laws recently sold their house. The house was solely in my mother-in-law's name. She made about $50,000 from the sale of the house and it has been sitting in a savings account. My father-in-law has declined quickly with memory issues and may have to go into a long-term facility. Will they be able to take this money from my mother-in-law to have to pay for the nursing home bill? Or is there a way and she can disperse this money say in trust accounts for her grandkids or gift it to her kids so they can't take it? The house was solely in her name when it was sold. My father-in-law is 90 years old my mother-in-law is 70. I have power of attorney over both of them. We are just trying to protect my mother-in-law 4 down the road when it comes to money. Thank you so much for your time and consideration.

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Willis, your mother-in-law needs to consult with an elder attorney familiar with Medicaid laws in your state. If it's a community property state, the house proceeds may be considered part of the assets of your father-in-law. If she sets up trusts or gifts money to family members, it will cause a problem if SHE needs Medicaid within 5 years of the date of the transfer even if it's not considered an asset of your father-in-law. Community spouse Medicaid is very complicated and a do it yourself project in most cases.
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See an elder care attorney - but your MIL should not do anything with the money but keep it for her care. Medicaid has a five year lookback and she will be denied if she gifts the money away. Ditto for trusts.
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