Will Mom paying her daughter for doing chores she couldn't do for herself cause a Medicaid problem?

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And car questions? My Mom is in a nursing home on private pay now. But the money will be gone in 2 months.
Four and a half years ago we went to an attorney for some guidance. He said the car was fine in both our names. He put a TOD on her house. Advised us to put my name on her checking account, which we did. He said she could pay me, rather than an outside service, for work at her house. I had already cut my hours at Walmart, so I could help her take care of my Grandmother before she died, so this seemed a good plan at the time. This averaged 40 hours a month at $13 an hour. I didn’t charge her for just visiting, only for working.
She began paying me to do the laundry, cleaning, bill paying, bathing assistance, errands, etc. She paid me for a year, then decided instead of paying me money for these services she would let me have her car as she didn't drive anymore. There isn't anything in writing about this work being payment for the car. She bought the car new in 2008 for $20,000 and put it in both our names then. It is worth between $12,000 and $14,000 now (depending on which blue book you use).
1. Will I have to pay back the money she paid me for the work?
2. What happens to the car? Since both our names are on the title, will half of it be considered a gift to me that I have to pay back?
3. She did buy it 6 years ago. But since her name is still on the title, I am guessing it will still be counted as her asset. I have read that in Oklahoma, her car can't be worth more than $4,500 for Medicaid purposes. So I don't know what to do since I have paid for the car with my work. Am I going to have to sell the car since it is worth over $4,500 and I can’t prove I have been making payments on it through working for her?
Any insight would be appreciated. I am trying to get all her ducks in a row before she applies for Medicaid. And I just want to know what to expect. Thank you.

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An elder can legally pay a family member for assistance, so long as it is at the going rate for such type of work, and the payments are made concurrently (e.g., at the end of each week for the number of hours worked).

One auto OF ANY VALUE s exempt from Medicaid countability. The $4,500 limit was changed a few years ago and no longer is current law.

When she put your name on the car she was making a gift of one-half the then-value of the car. If she applies for Medicaid within 5 years of such gift it will count against her as a disqualifying transfer.
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Since I have been thru this with my Dad in a NH and my mother still living I hope I can shed a little bit of light. Each state is different when it comes to Medicaid. I am in Massachusetts so the look back is 5 years. Had a lawyer help me as it was way over my head. Since there was a living spouse everything was put into my mother's name and my Dad was left with $2,000 or less per month. My mother wanted to pay me a sum for all the work I have done and I asked the lawyer and she said NO!. do to the look back. What they may or could do is put a lean on your car to get back the money they feel is do your state. I do have my name on my parents checking accounts but it is only to pay bills they are the primary owners. It is sad that we can't help them out and get paid to do so. Wish all the luck in getting thru this. It can be tough and the paperwork never stops. You will have to reapply yearly for Medicaid to.
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1. She paid you, but if you didn't declare that $$ on your tax return, it's a gift.
2. Yes the car is a gift, but it's over 5 years ago. It is still half hers.
Medicaid won't tell you to pay it back. They will simply reject her application and she won't be eligible for it. Medicaid agencies must place a lien on real estate owned by a Medicaid beneficiary during her lifetime. That means the lien has to be paid before the TOD can happen. The opinion the lawyer gave you in 2009 was probably good, but the laws are rapidly changing in every state to get around any kind of asset exclusion.
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Don't think you will have a problem with paying for any expenses for her as long it is for her. Just keep any bills and all paper work. If you should buy something for her with your money and your reimburse yourself make sure you write what it was for. When I first moved my parents did not set up a debit card so I paid for a lot total about $800 so I wrote a check from my mother's account to me and luckily when we went for Medicard for my Dad I had all the receipts to prove what the check was for.
Good luck with the lawyer I don't know what I would have done without the one I went to.
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I am also new at this but I am surprised that an attorney told you to put your name on her accounts. from what others have told me.....you will be responsible for half of that money (inheritance if anything happens to her) to pay taxes, etc.; even if not your money originally. I have an appt with an elder attorney next month so I know how to protect my parents and myself.
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Maryland Medicaid will allow the person to pay for services that are needed even to relatives, but not to one who resides with her in the same house.
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Horrible! I can not believe the state taxing my kids, in that case take your cash out and pay them personally get the government put of your business
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Go back and ask that lawyer. He or she is best able to guide you, as each state is different.
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I'll be seeing the elder care lawyer today about this preliminary nursing home asset protection contract thingy we will be drawing up. Wondering if it will be okay for her to help me a bit with our few expenses but have actually been doing it mostly on my own as per usual. My power and light bills are a bit higher since I've moved her in with me. Hoping whatever medical supplies she will need down the road can come from her checking account but thinking probably not (?) We're in Ohio. Questions, questions, and I'm sure gonna ask him today. We live cheap all the way around, always have, so hoping we can go that route.
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P.S. Did see the elder care lawyer, and he was very helpful, a very down-to-earth guy. I've sought no outside help for her care yet (mom's still pretty functional) but did tell him my very steady work as a home-based medical transcriber will probably run out before I retire. He hopped right on that one and looked at mom and said there was no reason why we couldn't draw up a contract for me to work for mom, and I did get an STNA last year (knowing I could get full time employment pretty quickly should I have to and very close by). We'd definitely need somebody to watch her should I have to get work outside my home. I have time to think about and do my homework on this one, will not quit the transcription job but who knows when and if they'll let me go soon, supervision tell us nothing. Was just a relief knowing this is a realistic option for us and the least disruptive all the way around. I'll no doubt go nuts, yes, but right now I'm relieved. And yep, gotta keep receipts but he saw no problems with her helping with household expenses should I need her to down the road. She acted okay with all this and liked the guy. Good day yesterday.
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