My mom is needing to spend-down $18,000 before qualifying for Medicaid. We are trying to use the money wisely, i.e. cremation/memorial service, paying off her home, property taxes, and a couple of other debts.
As of today, her best friend/boyfriend (whatever they want to call each other at any given moment) of 20 years (living separately btw) says my mom owes him around $12,000 for repairs he made for her over the years. He is asking that we pay him out of the spend-down money.
We are needing to hold on to this money as just today we have been informed that she needs to go into Hospice. Our original plans were to sign over her mobile home in exchange for the debt owed, giving him a better home to live in as well as less hassle of trying to sell her home after she's gone. Of course we know this can't be done if Medicaid comes into play.
If we choose to pay him out of the spend down money, would Medicaid accept that? There was no contractual agreement. The only proof would be a receipt and my mom's word of mouth that she said she'd pay the debt eventually.