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Hi everyone
Dad moved in with us a few months ago. He does not own a home. We will be looking at Medicaid nursing home in a near future. I was wondering if he can pay for the repairs of our home since he is living here now without it being counted for penalty during Medicaid look back. We have been using his debit caard to pay for every day expenses like groceries and doctors visits but was wondering if we could make a bigger purchase since we have to adapt the house.

Consult an elder care attorney who's versed in Medicaid who can guide you accordingly. Medicaid looks back for 5 years at large expenses, so you need accurate info about this.
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Reply to lealonnie1
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If he is not an owner no it will be seen as gifting.
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Reply to Guestshopadmin
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One way you can legitimately have your Dad cover expenses is to charge him for shared expenses, with a contract, as you would if you had a roommate. You'd figure the cost of housing, utilities, food, etc. and charge him his share. For example, if there are 3 of you it would be 1/3rd the cost of utilities, insurance, maintenence. Same with food. You mention you are using his card to pay for groceries, but please make sure you could demonstrate that this is the cost for just his share. If it's clear and well-documented that he's paying you a portion of the overall household expenses, it should not be a problem with Medicaid and wouldn't be considered gifting. Having Dad pay for repairs is not good idea. That is your responsibility as homeowners, as it maintains or increases the value of your house.
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Reply to newbiewife
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catherinepb Sep 23, 2024
I’m not paying every grocery bill with his card but when he comes along he asks to pay so sometimes I do let him. Yes as a homeowner repairs are my responsibilities but if he is living with us and not sharing any of the cost or mortgage or bills we thought he could pay for some repairs etc. Without it looking like a gift.
(1)
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No. You cannot. This would look like he is gifting you.
What you CAN do if you are POA and even if not and if your father doens't have dementia, is go to an elder law attorney and make out a care contract. This would include shared living expenses for mortgage, repairs and maintenance and upkeep as well as food, transportation, needed adjustments for living space and etc. Careful record keeping required and on you go. Be certain you don't put in "rental" which is income and has tax consequences, but rather "shared living costs" which doesn't . This attorney for an hour of time can answer many other questions for you as well and it's crucial you get this right for your father's sake.
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Reply to AlvaDeer
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catherinepb Sep 23, 2024
Thanks. He does have dementia that’s why I moved him in with us. I’m not sure how quickly it will progress. We might have to make some repairs to put him on the first floor once he can’t do stairs anymore.
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Why would you "adapt" your house if he's going to be living in a nursing facility in the "near future?" Something smells fishy in Denmark if I may say so myself.
You don't want to do anything that is going to hurt him in the future with being eligible for Medicaid, and that will only benefit you. There's something just not right about that.
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Reply to funkygrandma59
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catherinepb Sep 23, 2024
I don’t know how near is near future. He has dementia I don’t know how quickly it will progress. He’s obviously going to stay here as long as we are able to care for him. This does not change the fact that he does live here and the house needs some updating remodeling if is going to stay on first floor so he does not have to take stairs. And since he lives here and something breaks I don’t see why he shouldn’t pay for a portion of repairs?
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The look-back issue is that changes to the house will increase its value for you, even if they are needed for him. The increased sale value for you is a gift from him to you. What you could do is to charge him rent which will over time pay off the cost of the changes. Make a written agreement, before and after the changes, and implement the increased charges when the work has been done.
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Reply to MargaretMcKen
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No not legally. Charge him monthly rent with a lease that is where you can get funds from.
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Reply to MeDolly
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If you are not his FPoA then definitely no.

Even if you are his FPoA I would not do it since most states' Medicaid lookback period can be 5 years and they'd most likely see this transaction as gifting, which would delay or disqualify him from receiving this benefit.

You can consult an elder law attorney and/or a Medicaid Planner for your home state to confirm. *Maybe* if the remodeling/adaptations directly benefited only him? But again, definitely consult a professional.
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Reply to Geaton777
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No, even if these repairs are for his benefit. Its gifting. Medicaid looks at it as you will profit from the repairs/upgrades if and when u sell your house.
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Reply to JoAnn29
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No your Dad shouldn’t have to pay for your home repairs with his money. Did he charge you for raising you, your groceries, etc.. I don’t understand how some of you that your parents raised want to make them pay for everything. I hope you’re not using his debit card to pay for all the groceries for your home. It seems like you are wanting to use all his money before he becomes eligible for nursing home. He worked for that money and maybe your Mom did too. His money should be used on him only, not for your home repairs, your groceries, etc.. Don’t you love him and want to take care of him like he did you? I took care of my father and never took one dime from him. His money paid for his clothes and what he wanted and needed, not my needs.
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Reply to loyalone
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MargaretMcKen Sep 28, 2024
Loyalone, I wonder if you are quite bright, as well as having a fair amount of money plus being very pleased with yourself. If your D had tried to charge you for what you got as a child, you wouldn’t have had any money to pay! Unless he gave it to you and then got it back. For pity’s sake, use some sense!

It’s a legal and moral duty to raise your children. It’s not possible to ‘raise’ your parents. You have no obligation or duty to pay their bills, though you can if you want to AND have enough spare money. Would the ‘one dime’ you never took from him, have added to other dimes you earned yourself by working long hours on the minimum wage? Perhaps not.
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catherinepb: No, you should not do this.
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Reply to Llamalover47
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If you allow him to pay part of the grocery bill that is not for his food, he is gifting you the food, and you should be recording it as such. I know that sounds harsh, but to look at it another way, the Medicaid funds that will eventually pay for his nursing home care are primarily not funds that he earned but ultimately are paid through our taxes. If he makes gifts to you now, it is reasonable that they count towards prolonging the time before he is eligible for Medicaid.
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Reply to Igloocar
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When we were researching plans for my inlaws, 2011, Medicaid would have allowed my inlaws money to be spent on the changes necessary to make one of our homes handicap accessible as FIL was a double leg amputee.
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