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My aunt has cerebral palsy and she had worked hard for her money and left that money to my mother. There are things that my mom needs in her room. I was told if I provided a receipt that she could use some of the money for that.

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Who is "them". Most inheritances are not taxable, so your Aunt can spend anything she likes on anything she wants. I don't understand the question, but congratulations.
If by any slim chance your Aunt is on medicaid, and has a large inheritance that is great for our government to hear, for taxpayers to hear, AND for your Aunt, who will have so many other choices in her life now.
And again, congratulations. This money should go to your Aunt and to her care and enjoyment.
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worriedinCali Feb 2020
Her aunt can’t spent the inheritance on anything she wants. She’s on Medicaid. The money has to be spent down on her care.
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It might be worthwhile to consult an elder care attorney. Know also, that Medicaid should allow you to use the money to pay for a prepaid burial for your mother, exclusive of the $2000 she can have in her account.
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No governmental entity or facility is going to “take” the $.

Instead as she now has $, which is “income” for month received & then becomes an”asset” afterwards, she will be over Medicaid eligibility. She will need to do a spend down, & others have given you solid suggestions as to how to use the $.

Please realize that if this $ is coming from an estate that is in probate, that $ will be considered a distribution from the estates assets AND can be found out.
Distribution requires a filing to the docket that is the case # in probate court; might require orders signed off by the probate judge to allow the distribution (this kinda in my experience depends on if independent administration or dependent one); AND will need the tax ID # of the recipient if over $600.00, so the executor could send you out a W-9 to fill out or may already have that.
Whatever the case, your name, the inheritance $ amount & tax ID will be on file. It’s gonna surface eventually.

If this is quite a bit of $$$, I’d really suggest 2 things:
- ask the executor if, just if, they can wait a month or two to do the actual distribution
AND
- within this time, you find a CELA level of elder law to discuss options for how to best deal with the windfall. If it’s really a lot of $ - over 500k - the $ might actually outlive her. That’s different type of planning. Really mom will have the $ to pay for attorneys advice. Good luck.
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The money is to go for her care.
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Rather than try and work the system, be grateful that your mother will now have the money to self pay her AL cost.

Medicaid is not going to take all her money, she will now go on self pay, and off of government assistance.

She can buy things for herself as needed, she cannot give large sums away to others, as most likely she will have to hop back on Medicaid.

Medicaid is funded by we taxpayers and it is just right if one can self pay then they do. I wouldn't mess with Medicaid, it is one of the most efficient government programs.
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katiekat2009 Feb 2020
I was just wondering - will Medicaid make them use the funds and pay back what was spent on Mom so far for nursing home?
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So you believe your aunt would not want her hard earned money spent on providing care or supporting her niece in AL? Why not?

The government is not going to take your mother's inheritance. The government is going to stop paying her AL fees because she will have the money to pay them herself, at least for a period of time. During the self-pay time frame, she can also spend inheritance money on herself: better wheelchair, bed, pre-paid funeral, etc. She cannot give her money away to avoid spending it on her care since she will eventually need to qualify for Medicaid again.
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The close to a million my father worked for for 50 years went to the very good SNF where my mother lived for the last 5 1/2 comfortable years of her life.

I had 2 sons who were entering college while she was there, whom I am absolutely certain she would have preferred to have the use of her funds for their educations.

Karma takes care of things, trust me. Get yourself good legal help, do what they tell you, do the very best you can for Mom, and appreciate the fact that you are doing the right thing.

I’ve never regretted the decisions we made with my mom’s money.
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How large? Assets over $2000 means she will be ineligible for Medicaid. The month she receives it And until she is back within Medicaid limits, you can purchase things for your mother within allowable limits-legal fees to have advice and direct you in allowed purchases, prepaid funeral items, furniture, A personal aide that declares income for federal taxes, wheelchair, comfort items, “items for her room within reason” etc. And while she is not eligible for Medicaid your mother will pay her own medical and room and board expenses using her inheritance. What you cannot do is pay for family members travel, make gifts, or put the money away for an inheritance for others. Find a certified attorney well versed in Medicaid and they can help determine the best ways to get value in Medicaid allowable ways for your mother’s benefit.
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TXGirl82 Feb 2020
@Guestshopadmin, thank you for explaining this so clearly.
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Glad and Countrymouse are absolutely right, as usual. And, I know it’s not fair. However, it’s just the way it is. Whatever you do, do it with the advice of an attorney. Don’t try to “put one over” on Medicaid. You can’t. Somehow, somewhere and at some time, the Government will find out and she could lose her Medicaid coverage and not be able to get it back.
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Mom's money has to be used for her care. Is it ethical for you to want to keep that money hidden so that you can inherit it and taxpayers pay for her care through Medicaid?

See an elder law attorney to see if there is a legal way to set this money aside. There may be, but not in many states. Sounds like Medicaid pays for her long term care now. With the inheritance she will become ineligible for Medicaid until it is spent down to $2,000.00. If her funds are not spent for her needs, then Medicaid will penalize her and not pay for long term care. Somehow someone else will have to come up with that money to pay her bills and provide for her care.
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Oh dear.

I can understand that it goes against the grain that your aunt's hard-earned wealth will all "go to the government." But it isn't really going to the government. It will be put towards your mother's care, which your mother needs, and which is currently paid for by the government only because your mother had insufficient funds to pay for her own care. Now that your mother has been left a large legacy, she does have sufficient funds - at least for the time being.

But how large is large? It would have to be very large indeed to make much of a dent in average total ALF fees.

As to what the spending rules are when a Medicaid recipient receives additional money long after her application has been correctly made and accepted: if I were you I'd check with your mother's specific Medicaid provider, I certainly wouldn't take anyone else's word for it.

Just mulling... if it isn't too late, your aunt's executor might possibly be able to do something about the will. Could be worth asking, but tread very carefully. Were there other beneficiaries or only your mother?
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