Why would she need a life estate on your home? Is this meant to be a way for her to transfer a large sum of money to you? I don't think this sounds legit.
This is a bit confusing. You can care for her and be paid immediately from her assets, without waiting for an inheritance. However you have ethical ‘trust’ obligations as POA, and if you have taken more from her estate than is reasonable, you may have to deal with claims from other people who are entitled to an inheritance.
Is your question about whether payment to you for a life estate in your house, would count as spending down for Medicaid purposes for her? A life estate means that she has the right for her lifetime to live in your house – and if she continues to live with you, she probably wouldn’t be eligible for Medicaid anyway. Would it be such a good idea for her to have that right? - what if she really needs a nursing home? How would Medicaid treat payment for a life estate that wasn’t actually utilised – my guess is not with enthusiasm!
The idea of a person with POA making a contract as POA with themselves as an individual, to pay a large sum of money from one hand to the other, would raise a few eyebrows, and potentially not just with Medicaid. Are there other family members who would find it objectionable? A fraud case or even the gossip could be very unpleasant. Saying that it would come from your own inheritance definitely needs legal advice to make it stick.
For smaller sums of money, a carer agreement where she pays you for care would probably be more straightforward. As Ahmijoy writes, check it on this site. Borrowing money from her would be easy and would then ‘come off your inheritance’, but while it might work for you it won’t help with Medicaid. Just make sure that you document it, and that the loan is eventually declared as an asset in her estate.
Perhaps you could ask for more details from whoever mentioned the 'life estate' to you. The details would help to clarify what they mean and how it affects what you are trying to achieve.
If you search “Caregiver Agreement” on this site, there should be a print out. As for the Life Estate, I believe those papers should be drawn up by an attorney who can also advise. ,
Is your question about whether payment to you for a life estate in your house, would count as spending down for Medicaid purposes for her? A life estate means that she has the right for her lifetime to live in your house – and if she continues to live with you, she probably wouldn’t be eligible for Medicaid anyway. Would it be such a good idea for her to have that right? - what if she really needs a nursing home? How would Medicaid treat payment for a life estate that wasn’t actually utilised – my guess is not with enthusiasm!
The idea of a person with POA making a contract as POA with themselves as an individual, to pay a large sum of money from one hand to the other, would raise a few eyebrows, and potentially not just with Medicaid. Are there other family members who would find it objectionable? A fraud case or even the gossip could be very unpleasant. Saying that it would come from your own inheritance definitely needs legal advice to make it stick.
For smaller sums of money, a carer agreement where she pays you for care would probably be more straightforward. As Ahmijoy writes, check it on this site. Borrowing money from her would be easy and would then ‘come off your inheritance’, but while it might work for you it won’t help with Medicaid. Just make sure that you document it, and that the loan is eventually declared as an asset in her estate.
Perhaps you could ask for more details from whoever mentioned the 'life estate' to you. The details would help to clarify what they mean and how it affects what you are trying to achieve.