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Good Morning. Up until Hurricane Irma, my Mom lived in Orlando in a mobile home with little equity and little savings. Hurricane Irma flooded the home and the insurance has 'totaled' the home. Bottom line, she now has @ $20K to start all over again. This doesn't appear to be enough to buy a new property/mobile home as the new lenders want 25% down, and yearly income limits that she does not meet as she only has her Social Security that is not enough to qualify for a loan. So...we are in a pickle. She can't buy alone, so my options are to cosign and contribute funds to make up the difference needed to put down, or (my preference) is to buy the home myself in my name so I don't have to worry about any life events later that would lead to regrets (I am thinking of medicaid looks backs, approvals etc). I would like to buy an apartment in my name and rent it to her. It would be fair...I want to be above reproach and not cause her any medicaid hassles in the future (I worry as my family has been in nursing homes and I worry she may need the same assistance in a few years). Can anyone give me any suggestions or thoughts? I don't want to my silly mistakes that will cause issues later. I want to think it through now before I move forward! Also, on the five year look back period, how does Medicaid look at her spending? Since she lost everything in the Hurricane, she is spending a lot now from the insurance proceeds to replace furniture, clothes, you name it. Is there a limit on her spend? Will they question why she is spending so much in a six month period of time if the period fell in the five year look back period? Will they question the amount I charge her for rent if it is fair market value since I am her daughter? Thank you for any feedback or wisdom anyone can share!

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Why not have her rent in a senior complex that is pegged to her income? my mom has only SS and has a great two bedroom apartment and her rent is very low due to her income. Plus they have vans that go to the grocery store, etc. If she is a senior - have her live in senior housing
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I can't think of any good suggestions right now but did want to offer consolation for you and your mother in the handling of post-hurricane treatment for victims.

Sadly, your mother isn't alone in being inadequately compensated.

There was a PBS special a few nights ago on post-Sandy actions, delving into fraud and abuse by those involved in the so-called reconstruction.

Unfortunately, as sophisticated as the US is or should be, we still have a lot to learn in helping hurricane victims restore their lives, and of continuing to rebuild in disaster prone areas.

On the issue of your assistance for her, I think that's the only way she'll be able to afford a place to live as the federal compensation for loss is grossly inadequate.

I can't speak to how Medicaid would view replacing items lost in the hurricane. This isn't a gift though; it's (inadequate) compensation for a loss.

But given that disaster economics is a whole different game in terms of reimbursement, I think I'd be inclined to consult either an elder attorney or someone experienced in disaster compensation to get a good legal opinion in the case the issue arises down the road.

How is your mother handling the disaster recovery, emotionally?
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Hi Garden Artist, thank you for your support! She is doing quite well under the circumstances. She lost my Dad a few years ago and the home was a little too empty, too far and too much for her to handle, so now that she is staying with me, I think she feels safer and settled in a crazy turn of events.

She definitely wants her own place though. I think that next step will really make a difference. :-)
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I believe the choice you suggested... but to purchase a condo in your name only...and have mom pay rent is a good one.
You will not have issues with Medicaid. Make sure you have a lease. Make sure the rent is no more than the average in that area. You could include utilities as well..then it will make everything simplier.

You are smart to think about making sure the Medicaid lookback doesn't end up taking your property from you.

As for the rest, Medicaid does not look at the cost of living or medical expenses. So long as there is no large amount above normal....it is just living expenses and will not be seen as a gift.

Get it all in writing
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Hi Cj...I really like your 'purchase/rent' idea. My advice is to get Elder Care Attorney who can guide you through this and other issues as they come up. I did so years ago when my parents were starting to decline - and also had advance directives, poa, etc. drawn up - and even call him from time to time now when things come up and his help has been been invaluable.
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I think if mom's spending is on herself for furniture etc she should be OK (keep receipts). Medicaid is a needs based program. They will watch for money that is given away vs used on the applicant's own needs. So mom can't gift you money and then apply for Medicaid. Good luck!
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Medicaid will pull all the financial records of your mom. Banks, investments, everything. Each item they will question. Say $1,000 for rent and utilities each month. A check is written....they will want to see proof of what that is for. That is why you need a written lease. Any payments will need documentation to prove it was not a gift.

Medicaid does not have to provide financial services for your Mom...so, failing to provide the documentation they require will get a denial from them.

Just keep good records. Keep receipts. I kept photo copies of everything stored on disk, and on a backup hard drive. I could then reprint as many copies or the original as I needed. Also..the creation dates on the files showed that they were contiguous.

I never had to make application to Medicaid for my parents...but, I was prepared for it just in case.
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CJ, Your Mom can spend her $20,000 on Carribean cruises or liquor as far as the Medicaid look-back is concerned, as long as it's cruises and liquor for HERSELF ONLY. Medicaid penalties only arise when people gift away the money they could have used for their own needs. Don't let her give away large amounts of cash or large gifts, and don't use any of her money to buy a house that is going to have your name as owner.
She can spend her money on herself any way she wants without incurring Medicaid penalties. And Medicaid is not going to deny or penalize her if she gives perhaps 10% of her social security to charity, $20 to a grand-kid for Christmas and birthday, etc. If she gives $15,000 of that insurance settlement to you (or anyone else, including charity) then it could be a problem. That being said, the keeping of records and receipts is a good plan.
This would be an excellent time to meet with an Elder Law attorney, since your mom could spend some of that money on legal fees to get POA, will, etc., and perhaps explore housing options you haven't considered and/or help you make a lease or written plan for her to live in a place that you own. As long as she pays you rent that's comparable or less than the local rate for similar housing, you'll have no issues with Medicaid; but written records that prove that will be a good thing to have.
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Also for Katrina, those without insurance who were displaced got 10k from FEMA. Many were on some sort of “at need” program in LA or MS. In theory it was to be a single application by household but once that was figured out folks applied as individuals. The 10k was not counted as an asset for being eligible for a new program or re-eligible for existing program or for getting stuff from an outreach program. The 10large was viewed as for displacement costs. I’d bet FL is going to have some sort of threshold amount for insurance, FEMA, charity giving that just won’t be considered as an asset. So only above that figure do you need to document where spent.
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Garden - BFE ( base flood elevation) for MS & LA is coming in at 22’ for most coastal areas PLUS 2’ freeboard. So if your at or nearby the beach you could well be at zero or sea level. So you have to build up with your first floor at 24’ up. 1st floor at 24’ is really more at 3rd story. I’m waiting for the slow moving storm with cat 5 winds like Katrina that literally lifts the stilts houses up & off and tosses them a mile inland. Wizard of Oz’ish!

Worse are those who have property more inland but still coastal without a Corp of Engineers levee system in place and below the BFE to start with. Like more than 6’ below sea level. They start first floor at 30’ up.
Whichever it is, the costs related to foundation, stairs, lifts, elevators, etc just runs so much more than traditional building for elevated building and maintenance afterwards. It’s a real challenge. Most in H. harvey did not have flood insurance. I don’t see how those ever rebuild unless TX decides to do a 250k-300k grant program for home owners. (MS did a 150k MDA grant and it was still beyond that to rebuild which many folks couldn’t afford; LA did Road Home % grants which had lots of SSSandy type of contractor fraud issues). In many ways homeowners need to have their damage assessments come in way under 50% so house does not have to be torn down and rebuilt or if totaled rebuild an absolute no frills house as there’s not ever enough $$$.
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