I am my mother's POA. She has bank accounts separate from my step-father although she does share a joint checking account with him. She also has her own investments, plus owns a lot of land which produces a little income, and receives some social security and a tiny teacher's retirement. The best thing she has for her being in a nursing home is her long term care policy which is one of those few that lasts for the remainder of her life, (she will be 82 in July).
If she dies before needing medicaid, the accounts and the securities that she made me joint owner with right of survivorship will be a major part of my inheritance.
However, if she lives to the point where all of her accounts are spent and her securities are gone, I'll have to sell the land before I can apply for medicaid and use that money for her care until it is about depleted. Now, if her husband dies first, then those funds, etc. will need to be used for her nursing home care. I understand all of that and I'm keeping all of her bank statements for each year with a copy of her tax return, so that when I need them, those documents will be there.
What will medicaid do in this situation? Will it pay for what the long term care policy does not? My nursing home claims it will.