Hi All,

I want to thank you in advance for reading this. I really need your guidance as my mom recently suffered from a bad stroke and she really need help since she lost her motor skills and has vascular dementia. She can't no longer sleep thru the night and get up every 2 hrs so it's burning out my dad.

-Mom 65 and dad 69 turning 70 this year.
- all five year tax return filed joint with my dad.
-2020 tax return was 23k (SSI and 3k for providing child care)
- Own a home and two cars(one is 3 years old and one is 20 yrs old worth maybe 1500 and planning to sell it.)
-Jointed saving accounts (18k in balance), and my dad has 100k in his 401k(only his name) and 50k in cd(his name only).


I know 401k is exempt as long as my dad makes distribution by age 70 1/2, but since my mom is the one needing medi-cal will they count my dad's 401k since they have been filing joint? How about the 50k cd? If the distribution from the 401k bump up their joint income will it create an issue down the road?

Drawing down their assets:

If my parents hire their daughter in law as a caregiver(she is RN), say she bills them at 40 hr at fmv, will this create an issue?(will report it as medical expense on their tax return.

Any other potential problems?

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Do consider an elder law attorney consult. WELL WORTH the one hour you will pay for to assure you do not "go wrong". As all have observed, this is something with a big penalty for not knowing all the facts. You are researching and that's great as it will pinpoint your questions on your list for the attorney. Igloo is wonderful go-to, and knows as much as anyone on Forum to guide you in some issues, but to my mind there is no substitute in some situations for an attorney's help.
Do know that an RN (family member or not) will not receive RN wages for in home care. RNs are seldom needed unless for IV or wound care. A bad idea to take her from job to parental care.
You have a great start on your list of questions for your expert advice. Continue research and then make an appointment BEFORE you do anything.
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Yoir folks would be in the NH v. CS spouses situation, that is mom 2b NH spouse who has to become “at need” both medically and financially for Medicaid (aka MediCal for California) AND dad as the Community Spouse. Only mom needs to become impoverished for whatever level CA requires. Dad as the CS does not but just exactly what can become purely his assets and be ok for MediCal will be dependent on how CA runs its programs. And it’s not just the Medicaid stuff but how they have thier life insurance, pensions and property titles done, how a caregiver agreement and taxes filed on this, etc all will make a difference.

Married couple stuff is way complex….. it’s not just thinking well I heard dad can have 75k so he’s putting that $ into a new bank account. They need a CELA level of elder law atty familiar with CA Medicaid programs.
Not a DIY.

Barb is spot on that this must happened before they ever file.
Why? Well Medicaid usually places a “fix” on assets based on the day of LTC Medicaid application so if anything needs to happen w assets, including his assets paid for family caregivers, it needs to be correctly done prior. & really truly it’s not a DIY as 1 error and the $ move looks like gifting and Medicaid ineligiblity can be placed.
Read thru some of this years CS posts on this forum and you’ll get a feel for how this can go bad if you try it on your own and what some of the pitfalls r on NH v CS filings. Good luck.
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Your parents need to consult a qualified eldercare attorney who is knowledgeble about Medi-cal.

RMDs need to be taken at 72 not 70 1/2.

Dad's 401k is not protected in any fashion.

See a lawyer immediately before filing for Medi-cal.
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