Any good forum/place to post a couple questions, if not here? After I typed most of this I see there's a section for it, so maybe here? If not here, suggestions? Sorry for any rambling. I'll clarify if needed. ...very tired, never sleep much, busy.
I know to talk to more experts, of course, but I'm just looking for, well, which experts, and any thoughts on what to expect/things I can look up before so I'm prepared. I know the nursing home has social workers, etc.
Specifically about Medicaid, a little unexpected, not-known-about income ($1,100 from an electric coop mentioning 30 years ago dividend?, obviously not looking to preserve it, just pay to whoever needed, and not interfere with medicaid eligibility) (she gets about $700 Social Security), and large credit card debt (that I've paid on more than the principal, years, if forgiven, counted as income, above yearly medicaid allowed). No assets, house is very poor (large issues) and protected by life use (medicaid can't take it, confirmed). Tried talking to the bank with the credit card, but they won't since I'm not on the account, obviously. I got Mom to give verbal "ok", and I got limited access, but the guy was snotty and unhelpful (I was calm, asking basic questions, wouldn't answer, was just trying to get me to continue paying at the existing rates). The bank (BOA) is refusing a copy of my POA, they take a month to respond to regular mail (no bank branch within over 200 miles at least, mail was the only option they said I could use). I did ask a lawyer, my state, Nebraska, would and has accepted the copy I've used (bank here, hospital, everyone)(BOA says "incomplete", need notarized/certified copy that the notary said she couldn't do, lawyer confirmed it isn't needed, our state doesn't do that, told me I should stop dealing with them, but, I just want to be sure, because, well, can't cause issues with the Medicaid). The meeting with the lawyer was "unofficial", I just dropped in without an appointment and wasn't charged. I mentioned the income from debt forgiveness, she said it shouldn't bother, and I should talk to the nursing home facility, which I will. Like I said, just want to be absolutely sure, I've been misled before.
I was caring for her for years, over 10 years ago she quit driving, over 7 years ago she quit cooking/cleaning. She started wandering, dementia, falling down repeatedly (wouldn't wait for even 30 seconds), 30 miles from town, nobody out here to help. She's been in the nursing home a few months, mobility decreased, so the falling decreased (she can no longer get up on her own). With this going on, I just didn't get around to planning more than basic. Sudden rapid onset, wasn't able to go to town without her, or leave her alone if I did when I figured out what I needed to plan/do.
Thanks.
It's too late, due to your Mom's dementia for a new/better POA. You are going to have to become her guardian/conservator, and that's where I see you needing to start.
To become a guardian you require your Mom's MD to give you letters re her incompetency to function in her own behalf. This is attorney work after that. Take two letters, one from her own MD, one from Neuro-psyc MD to your attorney and he will walk you through the court action to become conservator or guardian for your Mom.
You will then have all powers with all entities and will handle all money in and out of Mom's accounts. You will need to do meticulous record keeping.
Sadly there is often no way round getting decent legal advice, so that would be MY own advice here.
And yes, do come to Forum to ask questions, hopefully one at a time. But do remember that medical questions are best handled by Mom's doctors, legal by an attorney, and your POA will allow your attorney to allow you to be reimbursed from Mom's funds, as POA, Guardian or Conservative is paid by the Principal's estate.
If you need applications to Medicaid that will have to come after the legal work is done. Can be handled then also with help of attorney or other advisor.
AARP recently posted a help line which is run by volunteers. I haven't used it, but worth a try. You call the number and give a good time for a callback time and they will have a volunteer familiar with services in your area call you back. They are imho a reputable helper for those involved in elder care. The number they posted in this month magazine is 888-281-0145. If you aren't yet a member of AARP I recommend them as their mailings are packed with info each month and membership a mere 12.00 a year last I looked.
Good luck. Go up top blue line, near your avatar, now and check out "Care Topics" where you will find a ton of information to keep you reading all day. And welcome to Forum.
BOA said it was "incomplete", their word. But, it is notarized. Lawyer didn't know what they mean by that, she looked visually baffled, said there's nothing wrong with it, and BOA won't speak to me about the details. But I suppose I could try again, have a few times already. POA is part of a few pages long, first couple are the full POA with one notary/signature area completed, remaining pages are Medical POA/living will ending in notary/signature/witness signature. First time I mailed just the first POA part, thinking they didn't need the medical part. Month later they said refused. So, I mailed the whole thing (since it included witness plus extra notary area). Month later I received what I said. I have the original, but I've sent copies, which might be the issue. I thought if there was something like a certified/notarized copy, but I spoke to both the lawyer and a notary, no such thing in Nebraska (?). The lawyer said the copy is good enough anywhere in Nebraska. And I'm not sending the original....
BOA is credit cards only, no accessible credit either, no asset accounts. I'm just trying to get things squared away.
Her bank here (checking) accepted the copies, so did the hospitals, the nursing home, and, well, everyone. Lawyer basically said I should stop trying especially when they're making it difficult.... My mom is judgment proof.
Medicaid is already approved and has been for a long time, just didn't know about the couple situations I mentioned affecting it. And, didn't know if they'd try to sue her. I told them her situation, but, like I said, they wouldn't converse with me other than trying to get me to continue paying.
Thanks. I'll continue reading. Been doing that for some time.
Depending upon your state, BOA may be forced to accept your POA.
OK so I’m guessing that the CC debt is a bigger amount so any 1099-C’s takes her beyond her ability to have up to $2K as a nonexempt asset for how most States look at assets once on LTC Medicaid. 1099-C is “phantom income”. It’s debt forgiven so the $ amount exists but ya have no real $ in the bank from it, just phantom $. Yet reported $ as income to IRS.
If this is your worry, hang with me on this as it convoluted. My MIL was quite a financial terrorist, had all sorts of personal & biz defaults left in her path, so got 1099-c’s & some came in when on Medicaid. Fwiw 1099-C situation isn’t uncommon cause if something bad happens to you…. loose your job, have an accident so cannot work, a foreclosure hits you ..all these create an ability to be low income for Medicaid but also creates default on debt; which in turn might mean 1099-C phantom income but yet taxable income.
In my experience LTC Medicaid means 2K max total assets - whether mom keeps her old checking account and mom/you write a ck to the NH ea month for the Medicaid required copay & her personal needs allowance builds up in her checking account each month OR mom has let the NH become her SSA representative payee so her mo SSA goes to NH and then NH takes her personal needs allowance and the NH puts PNA$ into a NH trust account for her which is used to pay for things not covered by LTC Medicaid (beauty shoppe, incidentals, maybe cable if not included). Whichever done - checking account or NH trust account - cannot go over 2K for most states. But if 1099 surfaces, it take her over 2K as it’s reportable income.
Lets say mom has 2 CC, Visa $5,678 & MasterCard $9,876. Mom defaults on Visa this month but defaulted on MC last year. MasterCard as Original Creditor issues mom 2022 tax year 1099-C for $9,876 and she got it end of Jan this year. (1099 issued for last tax year but sent Jan/Feb of incoming year). $9876 phantom income notification gotten Jan 2023. What she/You as POA do is get a tax pro to file 2022 taxes for her & do IRS 982 - Reduction of Tax Attributes Due to Discharge of Indebtedness form. Form 982 zeros out that phantom income so all good for anything needing low income. So if an IRS match by the State surfaces $9876 income by filing taxes with 982 it’s zeroed out. Not a DIY - reading the form makes me dizzy - but CPA or tax pro work. Then for this years taxes when Visa issues mom their 1099-C for $5,678 in January of 2024, rinse & repeat.
& you kinda need to pay attention to this because “phantom income” is taxable income for IRS. And IRS as a super creditor is a rare creditor who can seek taxes due from SSA income. For those in a NH, morphs into a real problem as they are required to do a copay / share of cost to the Nh of almost all income. If IRS attaches, they can’t do required copay. So becomes an issue for NH copays & therefore Medicaid regulations. It’s convoluted.
Some States do IRS match up, so 1099 surfaces. It’s not just an elderly on LTC Medicaid problem. Like if you have things go bad so ya loose your home (foreclosure creates mortgage forgiven), default on CC and other debts, all can issue 1099-C. Apparently Hawaii does IRS match ups, so in that State some need to do a 982 to have the “income” zero out so they can stay ok for low income based programs.
Also only the Original Creditor can issue 1099-C. If it’s gone from the OC to debt collectors, the debt collection companies cannot issue 1099. Although some bluff they can.