On incompetent relative bank account but not POA or Guardian...is it legal to move money?

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My brother is on my dad's checking account but he doesn't have power of attorney or guardianship. Dad is deemed incompetent now due to very quickly progressing dementia (long story, he got pancreatitis). He is now in a skilled nursing facility. They say he has progressed physically and mentally as much as he is going to. He will have to be sent to a nursing home as he is still in diapers and can't do anything for himself. They want my brother to apply to Medicaid for him. But we know he has too much financially to qualify. We know they will take all he has before he will qualify. They said they will go back 5 years on his account. Is it illegal for my brother to take his money?? He did move it to his personal account when dad landed in ICU. We aren't even sure that is right?
It has been an exhausting emotional rollercoaster with everything that has happened with my dad. Kudos to all of you who deal with everything involved in taking care of the weak every day!!

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Okay, thanks!
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The money has to be spent down on your father's care. There are things that Medicaid will allow and things they won't. For example, you can spend down on things like the house, the car, food, healthcare -- the normal things of life. However, you can't buy a car for you or your brother. Your dad's money has to be used for himself.
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Okay, thanks. I am a little confused...you say he shouldn't do anything with it but also needs to spend it down in order for him to qualify? Is this spending down in cooperation with Medicaid after he applies?? Thanks.
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BTW, it would not be a good thing to move money even if he were POA or guardian in order to shield it from paying for your father's expenses. If that were allowed, children of a millionaire could just take all the money, then apply for the state to pay for their parent's care. Money is easily traced, so Medicaid will notice movement of funds right away.
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Your brother can't gift your father's money to himself or anyone else. The money needs to be used for his care. If he applies for Medicaid, he will need to spend down the money in his accounts in order to qualify. If money is missing, it will keep him from qualifying until the penalty is paid. If your brother moved money from your father's account he needs to return it before he applies for Medicaid.
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