Hello, I recently learned that one of my siblings (Power of Attorney) has taken the proceeds from the sale of my mother's house. My mother relocated to a nursing home about two years prior to when her house was sold. My brother did not inform me or my other 4 siblings about selling the property. A trust account for my mother's assets was never established. My brother has filed his own personal bankruptcy and now tells us that all the money from the sale of our mother's house has been spent, over $200,000 net. Medicaid has suspended my mother's payments since proceeds were never reported by my brother. The nursing home says she will need to be released if payment (approximately $30,000) isn't paid next week. My mother is in her 90's. My Power-of-Attorney brother has mis-managed her estate and is now asking to me and our other siblings) to fix the issue. Except for one other sibling, we are all located out of state. It would be dangerous for my mother to be released now. Can the nursing home release my mother in her current condition? Can they sue the family, and/or bring lawsuit against my brother (with Power of Attorney) though he has filed bankruptcy? Thank you for your feedback.
None of his remaining math adds up, and said he has no documentation/receipts. What we were given were the notices from Social Security, Medicaid and correspondence from the eldercare lawyer (who also wasn't aware of the missing funds).
He has recently completed an application for a Qualified Income Trust (Q.I.T.), which I understand is a requirement under the new Medicaid regulations? My mother's income (SS and pension) would fund this trust, which would then pay the nursing home monthly. Her income is only about 1/3 of the Medicaid rate, so I'm not sure how that will work. At this point the Q.I.T. may be too little compensation too late.
One of my other brothers mentioned that our mother could become a ward of the state. We're unsure of much information. Unfortunately, our mother wouldn't share her end of life plans with anyone but the brother who has Power of Attorney.
This scenario happened to a co-worker only when they put mom in nursing home they sold the house and divided the proceeds among the kids later who spent it all before they found out they had just gotten mom disqualified from Medicaid - bad move.
$200,000 minus:
Any pre-existing debts
Upkeep and taxes on the unoccupied home for two years
Nursing Home fees up until the current outstanding $30K, which might have been quite a lot.
Sums legitimately spent on mother's own expenses including health care.
Mother was admitted to the NH two years before the house was sold. How long in total has she been resident there?
Your brother has made a right pig's breakfast of his POA responsibilities but he hasn't necessarily just pocketed the money and fraudulently spent it. First of all, I'd get the numbers thrashed out and the reporting gaps filled in as far as possible. Then you can see where you are.
But in any case, he as POA is the one who is responsible for the money and the only one of you siblings who can be liable for its repayment.
I don't know this to be true, but I would be beyond astonished if the Nursing Home could legally evict your mother without first finding a place of safety for her to be discharged to (I agree that APS will be the best resource for advice on regulations like this, among other things). And if her state of health is such that any move would endanger her, then get her an attorney or an advocate to get a court order to prevent it.
I think that reporting the theft of your mom's funds may need to happen so that Medicaid views this as a "crime" and not a "gift".
Does your brother have addiction problems.?