Is the money that an elder keeps for personal needs from SS looked at as income for Medicaid purposes?

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I have POA (financial) over my aunt in VA and am concerned because the $82.00/mom that she receives builds up when she doesn't use it. Please help.

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The second part of the answer, as it applies in my state is explained by the Department of Community Health's Estate Recovery Program. It states "The QIT [Qualified Income Trust aka personal needs account] terminates upon the death of the applicant, or upon the express written authorization and approval of the Department of Community Health".
"Any money left in the QIT after the death of the applicant is paid to the state of Georgia up to the total amount of benefits paid on behalf of the applicant for medical care".
It further states: "Any remaining funds are paid to the remainder beneficiaries as specified in the QIT document".
It just happens that in our state, we are required to list the state as the primary beneficiary of the QIT account.
Further into my document it states "Write a check for the balance of the trust fund made payable to Georgia Department of Community Health". It further instructs: "A copy of the bank statement should be enclosed to confirm the balance. A cover letter or memo must include a brief explanation that the enclosed check is from a QIT. Thee cover letter and check should clearly identify the decedent by name, Social Security number and/or Medicaid number".
Finally it states in bold print: "No other checks should be written from the QIT account after the individual's death".
Depending upon your state it will read a little different. What I typed here applies after my spouse in the nursing home dies. After Mom died, I quickly received an Estate Recovery letter for any debts owed the state of CA. My mom, however did not use Medicaid, so I did not have to endure that process with the state of CA. For GA I will as my spouse must be in the nursing home.
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Reply to Houseplant102
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If Mom is admitted under private pay and paying for all her care, monies left over in a personal account would still be hers when she died. The government can't take her money if she owes them no money.
It sounds like Medicaid is paying the bill and requiring the $82.00/mo. A resource (Mom's savings) above 2K is paid to the state INDIRECTLY. FPOA writes the check payable to the snf. FPOA (you) will re-obtain numerous up-to-the-moment documents. She's wiped out her lifetime 2K forced savings. Her income is still low + her savings disappeared.
It cost about $6K/mo for my spouse's nursing home. If $2K is saved, his forced savings must be spent or paid to the snf. I would write a $2,000.00 check to the snf. I would still have to re-submit updated documents.
She may need or want something several months down the road. If she doesn't want/need anything now, just figure out something to buy to keep her below the 2K limit.
Whether she has $2.00 or $2,000.00 it becomes part of her estate when she dies. Heirs can not take/receive any monies from your mom's estate because she will owe to the state.
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Reply to Houseplant102
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When Mom died, all I had to do was prove I was Executor of her estate and I received the balance of her PNA fund from the finance Dept of the NH.which was about 195. I doubt if they would have done this if the state was to receive it. Now maybe if a resident has no family or will it reverts back but not in my case. This money is theirs to do whatever they want with it. Buy clothing, food out of the vending machine, takeout, etc. It's their spending money.
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Reply to JoAnn29
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Thank you House plant, that is very helpful. I was told when she dies, that account that now has $2000.00 in her personal account at the assisted living, will go to her estate and eventually go-to her next of kin (her son), which is fine. Do you know where there is anything published specifically about this because it has her money over the Medicaid threshold by $2000.00 if it is counted, which I hear what you are saying that it's not. This stuff scares me honestly.
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Reply to Llhenry
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If she does not want/need anything purchased for her, any money that builds up, but is not spent, just goes to the state after she dies. It is like a forced savings account. This irrevocable trust requires any left over funds be paid to the state.

SS check is received as "income" and deposited. Next, $82.00 is taken out of her SS and deposited into her personal needs account. Since the $82.00 is part of the income when she first receives it, Medicaid can not say it's "income" a second time around.
Since the $82.00 must be deposited into a separate trust account each month no matter what, it becomes a forced savings plan/account.
Medicaid will not be upset if there is money building in her account as the state gets that money after your aunt dies.
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Reply to Houseplant102
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It is not income, but it can take her assets over the $2000 limit. What is it building up? Are you saving up for something?
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Reply to Guestshopadmin
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