Grandmother has been in a nursing home since July 2011 as a Medicaid applicant. She is pre-deceased by her husband and only child. Of her 3 grandchildren, I was the one she asked to be POA back when my grandfather passed away. My siblings have never had much interest in helping to settle her affairs with regards to getting her qualified for Medicaid, getting her home sold, etc. I've pretty much been on my own with my boyfriend helping me as much as he possibly can with all of the "process". The nursing home periodically calls me advising me that my grandmother has not yet qualified and that she's been there since July 2011 and they haven't been paid. They even mention that I may have to pay pricately for my grandmother's care while she is there.
I am faaaaaaaaar from wealthy. I am a renter and I lease the car I drive, I have my own bills to pay on the monthly basis on top of paying the utilities at my grandmother's home until it gets sold (its been on the market for months!). But I feel stressed about the potential of finding myself as being financially responsible for all of these expenses that have been incurred thus far. Aside from her home, which is on the market, she has no monies to pay for these expenses. The nursing home gets her social security so that's why I've since had to pay the utilities on her home but was not able to pay for a few credit card bills that she has so she actually has accrued additional debt since the NH started getting her social security cause I can't afford to pay all of her expenses as well as my own. I definitely cannot afford to pay her bill at the nursing home which by now is over 60K. I'd like to know if anyone else has found themselves in a similar situation where aid that you applied for for your loved one was not granted. Am I (along with my 2 siblings) legally required to pay for her NH care expenses? Will they garnish our wages? What happens when one doesn't qualify and the family just doesn't have the financial means?
Your aunt has to spend her $40,000 on her own care (or a large part of it) before she will be eligible for Medicaid. If the money is taken of and put in your name that will be considered a gift and will stay on record for 5 years.
To find out if there are any legitimate ways to preserve some of Aunt's assests she should consult an attorney whose specialty is elder law. The attorney can also explain what she can/should spend that savings on. DO NOTHING with the money before consulting an elder law attorney.
In general, while we'd all like to hang on to the family money, it's there to care for the people who earned it. Medicaid is a program for those who have virtually no assets. So most people have to "spend down" their assets to qualify. There are exceptions so if significant assets exist, it can pay to see an attorney to see what legitimate avenues exist for protecting the assets. Spouses do get certain amounts that they can keep as do disabled children (in many states).
Good luck. It's not always easy to understand these programs.
Carol