What do I do about the nursing home bill my grandmother stayed in? - AgingCare.com

What do I do about the nursing home bill my grandmother stayed in?

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My mother suffered a stroke in August 2016. I became her POA. I have been handling her bills until she was able to get back on her feet. One of her bills was a nursing home my grandmother stayed and has since passed in 2010. Unfortunately my mother signed paperwork when my grandmother entered that she would be responsible for the bill once my grandmother passed. Plus PA has the PA filial responsibilty law. Showing a death certificate doesnt matter and she still owes 6,000.00! Now mom is going on Medicaid long term and I am contacting all her bills saying she can no longer pay. What do I do about the nursing home bill my grandmother stayed in? Can they go after my mom? They cant take the house because mom had a reverse mortgage.

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Stopdangerousdriver - SS and other retirement income CAN be garnished by the IRS as the IRS is a "super creditor". The original creditor - like a credit card co, or utility co or mortgage holder - cannot attach SS as it's protected income. BUT any creditor owed over $ 600 can write off the debt and issue a 1099-C Cancellation of Debt. 1099-C is taxable income reported to the IRS. Often an OC has a year of in-house collection process with interest and fees going atop the original debt so the 1099-C will be more than what you thought. It gets reported to IRS in January for the year before when the OC wrote it off their books. IRS can and will attach SS. Dealing with 1099-C is done by doing a 1040 and Form 982 and imo has to be done by a tax pro; not ever a DIY project. I'd allow $ 300 - 400 for them to be done.

For those on Medicaid in a NH, having the IRS attach their SS poses the problem that they cannot have the full amount required by Medicaid to be their co-pay to the NH each mo.
Medicaid requires their monthly income to be their co-pay each month less a smallish personal needs allowance. So it kinda has to be dealt with which tax filing & Form 982 does.

Also if your state does an IRS filing match up, all those 1099-C's show up as "income" which makes them ineligible as they will be over the income & assets limits for Medicaid. Even though it is "phantom income" it still shows up. You gotta do taxes and 982 to get all cleared and basically re-set.
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Do not do ANYTHING without getting the services of an attorney who specializes in Elder Law. This is a complicated issue and you need help in handling it in a way that does not leave you holding the bag. I have been where you are and the attorney's fee is well worth the peace of mind.
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Don't do ANYTHING before contacting an attorney whose practice is Elder Law. This whole issue is way too completed to deal with on your own. You could make matters worse, with you ending up holding the bag. The attorney's fee will be well worth the peace of mind.
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The reverse mortgage will have to be paid back because it is a loan against the paid-up mortgage. That money is not free and clear. That would be like the bank giving you free money without any clause of repayment, which doesn't exist.
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Since Mom is on Medicaid, she is allowed to have $2,000 in countable assests. Medicaid takes the rest.
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Wait a minute. You can't garnish Social Security, specifically not if it's SSI. The only way they can get any of the money through the bank account though, is if the person getting the federal benefits gives access to that bank account where the money is being routed.

it may be best to familiarize yourself with the fair debt collection practices act, this will definitely help you. Besides having an alternate address for the bills to go to, you may want to return each and everyone of them and demand that specific facility stop contacting your mom, she is in a nursing home and is judgment proof. Mention the word judgment proof and if she's on SSI, mention SSI and even Medicaid. This will discourage the facility from harassing your mom who is now in a nursing home where the nursing home gets her whole check. Don't give the facility your mom's give the facility your mom's whereabouts or they will harass her at that nursing home. If the facility you demand to see his contact continues contacting your mom, it becomes harassment by law because bylaw they must honor your wish to see his contact according to the fair debt collection practices act
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You have some great advice here, listen to it! You cannot sign anything stating you will be responsible for your mother's bills. I would contact an Elder Law Attorney in your state and just ask them what to do, they know things we have no idea about. I would NEVER agree to pay a cent if I did not absolutely have to!!
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Since your mom is in a NH, the reverse mortgage agreement will no longer be in effect, and the government can demand repayment of the debt. Best to consult an attorney.
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I think Igloos answer was very good. I do think ur Mom needs to be living in the house on a reversed mortgage. You will probably have to sell the house for the Mortgage company to recoup. If there is any money left, that will have to go towards her debts including Grandmas that Mom took on. If anything left, Medicaid will have you use that for her care and then u have to reapply. Think you need to talk to a lawyer or CPA well versed in reversed mortgages. Should find the contract.
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Oh yes, as long as there is a bank lien on the house as you mentioned, why not just take over payments on the house and just transfer it to your name? That way, they can't take your house, which would be any rightful inheritance to the family
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