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Mother on Medicaid moving into assisted living. She can no longer drive so I need to sell her car.

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While one auto of any value is exempt from Medicaid, once it is sold the proceeds are countable as cash. If that cash puts the Medicaid applicant over the $2,000 threshold, it must be spent down or converted into some asset that is exempt (such as a funeral/burial policy) before the end of the month in which the car was sold.
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Proved to be the best resource on how to handle any situation I faced. Some would say not so, but I was honest, upfront & in all matters she was the same. When it came to the vehicles, she advised that I could bring in a copy of all current tax & tag statements which showed the current assessed value & I could buy them, then I needed to bring in the receipts from the Nursing Home showing I deposited the money in her Patient Trust Fund. Then spend it on her leaving her a balance well within the allowable amount. I did exactly as
she said & it all worked out just fine.
Again, let me stress Rules vary from state to state. I had a great case worker & was ever so grateful. Best to you as you travel down this road.
May be difficult for you at times, but Remember, You Are Not Alone. This web site has provided much-needed information & a place where you will find others who Care. Stay strong & be sure you take care of Yoursel!
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When she qualified for Medicaid they already knew she
had a car. So if you turn it into money, or turn it into a
funeral trust fund it is still under the $6000 allowed.
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Medicaid is uniquely administered by each state. So you need to find out what the limits are for your moms state. Assets are usually always at 2k for those in a facility. For funeral & burial those can be an exemot asset up to 8k/10k but done as a preneed NCV (no cash value) policy done at funeral home. Some allow for a small separate account for funeral to be set aside instead of a NCV policy. If your finances are themselves tight, having mom get a NCV preneed policy done now and within her current funds from car sale is probably going to be the lowest possible cost for either a cremation or traditional funeral.

States do annual renewals that can require documentation on the standing on these as well as banking & other asset info each year too.

Vehicles need to be sold based on Kelly blue book value. If its way lower there needs to be a sensible reason why (like there is significant body damage which you have pictures of or repair estimates) the car is devalued. Sale should be reported to caseworker the month of the sale with the proceeds deposited and spent within the month so that they start the month and end the month within Medicaid eligibility limits if at all possible. Also when you cancel moms auto insurance there could be a refund which counts into the $ as well.
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Once I bought the vehicles I had to get them retitled into my name. Once that was done, legally they were mine to do with as I saw fit. Again, best to you.
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Medicaid is tedious. Be prepared for the 5-year lookback, too, Image. You're NOT planning on leaving a nest egg for yourself? You should have your investment counselor put into a part of your portfolio, assuming you have one, long-term care.
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I applaud your mother for saving to take care of herself in her old age. The money spent on medical is for her use and she will get the best care because of it. I have seen medicare long-term facilities. They are human storage facilities. I praise your mother for how she handled her money and not making special efforts to fall back on the government (for it is the taxpayers that foot the bill). My mother also was a notch baby (older than your mother). She was fugal with her money and now has a good nest egg. The difference is she remains healthy (sort-of) and has a daughter that is a retired nurse that cares for her. The fewer people on medicaid, the better for the people in general. Please don't avoid accumulating a nest-egg for your future old age. Don't fall back on the government if you don't have to. You will regret it. Don't do it if you can at all help it.
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Imagine: You SHOULD save for yourself.
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As previously mentioned, Medicaid rules vary from state to state. Your first step is to find out what the rules are in the state your dealing with. My Mom's DFAX Case Worker (Department of Family and Children's Services) proved
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Unless you're one of the few of the very wealthy, saving money for old age means using our own savings to pay medical costs not covered by Medicare. Also, living to a ripe old age is great, IF you don't outlive your savings. Hitting the 90's, well, for many if not most of us, MediCAID is in our future.
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