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My mom has lived with us for 13 months. When she first moved in we used money from her savings to prepare our house for her. She is not at all mobile. We had to convert our dining room into a first floor bedroom ( close off walls, add carpet,baseboard heat,lighting fixtures, new bed,lift chair and stair lift to get to bath tub)
Now she is unable to get into tub so we had a walk in shower installed which required pulling up old tile and replacing it.
We have all receipts . Will Medicaid penalize her when she applies for benefits when the time comes to move to a nursing home. Her aide feels this step is coming sooner then we anticipated...she can barely walk, is almost 92 and beginning dementia..

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Medicaid will not pay for capital improvements to home, and they will challenge the expense, as it benefits the homeowner in the long run. Good luck.
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Go and get an elder law attorney to work through the Medicaid application. You want to see them BEFORE you do the application too. It is like Pstegman said, the property owner (you) has benefitted from the $ spent and Medicaid will tend to look at large expenditure paid to you as gifting. Now it isn't gifting per se but these sort of issues are super sticky to deal with and if you all are somewhat also dealing with mom's health & mobility issues 24/7 it will just be overwhelming to do all for her and then have to track down the guy who did the drywall to redo the receipt so that it has mom's name on it.

This site has a drop down list of NAELA (experienced elder law attorney's), I'd start there. Good luck and keep a sense of humor in all this too.
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