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After 3rd party insurance paid all hospital bills and attorney fees there was a settlement paid to me of $14,000. Do I still qualify to stay in nursing home on Medicaid in Arizona/ How much can I keep, how do I spend the rest to stay eligible?

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I personally cannot trust the people in my mom's nursing home. Use your discretion when talking to them. Pamstegma offered excellent advice. Prepay your funeral and buy a plot, if you have not already. Where I live, that would use the whole $14,000. I'm not sure if you can do a special needs trust after you are already in a NH, but it would be worth it to find out. Only you can say whether or not it's worth it to pay for a consult with an elder law attorney for that amount of money. Not to argue with anyone, but I think it's fine to spend it on consumer items to make your life a little better. You were hit by a car! Those are probably punitive damages. Are you 100% happy with the care you're getting at the nursing home? Would you like to pre-pay for a private aide for extra or specialized care? How about a massage therapist coming to your room once or twice a week with aromatherapy oils? Dental work you've been putting off? Better wheelchair? Orthotics in your shoes? Art for your walls? A "real" pillow? Nice comforter? Your own case of periwash, quality toothbrushes, washcloths? I'm sorry you were injured, but this cash is an opportunity. Would you like to talk to a therapist about the trauma of the accident...or anything else? How about ordering out a couple of nights? Being on medicaid does not men that you don't deserve to have anything nice, or treat yourself! The NH is making money hand over fist.

To give your money to the NH is a waste since that bill is being paid by medicaid. Do you know how much medicaid pays to have you there? Between $8,000 and $14,000 a month, depending on your level of care, so neither the NH nor medicaid NEED, or frankly, deserves your $14,000.
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Rare, if a person is on medicaid they cannot put money in a cd, bank account, or invest it. Medicaid only allows 2000.00 in assets so i dont understand your advice. Henri, of you have not prepaid your funeral this would be a good use of the money. Speak to the nursing home admin as Garden suggested be up front with them and perhaps they can help u out. Dont try and hide the money or give away as that would disqualify you. The nursing home wont kick u out, you just need to be up front and above board about all of it.
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The honest and upright thing to do is to talk with the NH's accountant and with your Medicaid caseworker and find an acceptable solution within the guidelines of Medicaid.

I'm not that familiar with Medicaid, so this is just a "stand-up" suggestion for being honest. See if you can apply the $14K to the nursing home as an advance payment on your costs.

If you have that much money, even if it is a windfall, my personal opinion is that you should use it for something legitimate, for your care, for a funeral plan, etc. But to spend it on consumer goods is to me an affront to the Medicaid system and the purpose for which it was designed, and a misuse of Medicaid funds to accept them when you have the resources to pay for your own care for at least a few months.

Don't forget you should research to determine if you have to report the $14K on your tax returns, which I believe you would.
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Depending on how well you know you can trust your trustee will depend on whether or not a trust would be right for you because not everyone is honest enough not to steal. Do you know what a trust actually means? It means that you're turning over the ownership of your money to someone else to do with it as they please. There are many relationships that have actually gone sour over money, and I don't think I would want to use a trust if it was my money. I would definitely look into an annuity and definitely CDs after first taking out enough to make my life more comfortable. You can do this by taking out just under the limit that you're allowed to have and still have your benefits
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The money is considered income in the month it is earned. It is irregular income so won't be counted as regular income. If you keep the money past 30 days in the bank it is considered an asset. If you spend the money or place it in a special needs trust it won't count and you will not lose eligibility.
good luck
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Actually, you may want to put that money into a trust or annuity to still protect your benefits. I don't know how trustworthy having a trustee really is because there's nothing stopping the trustee from stealing from you. You may want to alternately look at an annuity and put your money there, but definitely take out enough to make your self more comfortable. Another thing you may want to do with some of that money is put some into CDs. You don't want to put your money at risk by putting it anywhere else other than CDs or an annuity. Investing the money is definitely a huge risk you can't really afford, so I would definitely never invest in the stock market, because if you lose that money you can't get it back
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You sit down with the nursing home accountant and get some good advice. Maybe you need clothes, furniture, a bigger TV. You could buy a plot or even pay for a complete funeral. Get new dentures, glasses, a fancy power chair. BUT spend it down the same month you get it, or it will impact Medicaid.
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How do I pay down to the $2000 limit. What can I spend the money on or will they kick me out of nursing home?
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Henri, you would need to contact your State Medicaid office, as each State has their own rules, regulations, and programs.
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