I'm wondering, for those who've been through this: We had to do the Medicaid spend-down to get mom qualified for SNF benefits this past June. She had stocks and life insurance policies. When I could, I told them to withhold taxes on what they liquidated, but I couldn't for each asset. So now she's got no money left, but will likely owe on some of the capital gains, I'm assuming.
Before this, she didn't owe taxes at income tax time. She didn't pay Federal and state would refund her what she'd paid in on social security and her tiny survivor's pension.
Seeing as her income now all goes to the SNF except for the small monthly stipend, how will the government expect her to pay on the profit from the stocks and life insurance policies?