My MIL is preparing to move in with us. While she has a lease through summer of 2023 we have decided it would be best if she move in with us this summer. She will have to pay $3,000 to break the lease, but will save over the year in what her current rent is. She has very little savings and barely gets by on her social security. We have been supplementing her monthly income with $500 in order for her to pay for apartment. While we plan on her living with us for a long period of time, we have started looking at her buy down for Medicaid.
1. Can she repay the $6,000 she has borrowed from us over the last year to buy down her Medicaid?
2. Can she pay the $3,000 on her breaking the lease to buy down her limit to qualify for Medicaid?
Her monthly income of SS and any pension is not considered part of the spend down. (These will be used to offset her care in a NH if on medicaid) Its her assets that are looked at. Does she have stocks that can be cashed out? A life insurance policy with cash in value. CDs. Some retirement funds are exempt.
I would contact your local Medicaid office and see if you can get an appt. Find out what the asset cap is and what is considered an exempt asset. (My State the cap is 2k) Then you need to find out what the cap is for her monthly income of SS and any pension. (In my State its a little over 2300) If her monthly income is over the cap there maybe ways around that with a Millers trust/Qualified Income Trust. Ask if your state Medicaid allows these.
"While we plan on her living with us for a long period of time"
Not that you shouldn't look towards the future, but doesn't seem Mom needs LTC at this point. There is a certain criteria for LTC and Medicaid paying for it. I would keep her small savings because you never know when she will need it. The 3k could come out of that savings. That 6k you should have had a contract saying she would pay you back for Medicaid to except it as a loan. But there is a 5 yr look back and if she pays you back before then Medicaid will not look at it. Its any large amounts spent with in that 5 years they question and need proof. If you want to charge Mom room and board you need a contract. I would get a lawyer to draw it up. Because you will need to show this to Medicaid. You can prepay her funeral. You can also spend her money down when the time comes by paying for her care in a NH privately and transitioning into Medicaid. My Mom paid for 2 months, that spent down her money and gave me time to apply for Medicaid and the 3rd month Medicaid started.
In most states it only pays for LTC, which the applicant must qualify for. Medicaid will pay for "some" in-home care under the Elder Waiver program, so if you're planning on hosting your LO for a long time, you need to be aware of what support is available to her in your home.
I recommend you consult with a Medicaid Planner for your state for the best and most accurate guidance.