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Thomas McJD
Thomas McJD, Attorney
Category: Estate Law
Satisfied Customers: 3170
Experience:  Wills, Trusts, Probate & other Estate Matters
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My father passed away and left my brother and I his home in

Customer Question

My father passed away and left my brother and I his home in his will. But I have financial power of attorney over my brother because he is physically incapacitated and resides in a nursing home. Medicaid is paying 100% of of the cost for my brother's care. By ;law as I understand it, my brother cannot have more than $2000 to continue receiving Medicaid. As I understand it, I am required to forward any additional money my brother may receive to the nursing home he resides or it could disqualify him from receiving Medicaid for up to 5 years.So I have sold the house we inherited and I am scheduled to close in a few days. The title company reviewed my power of attorney and said I can sign for my brother. But I am very concerned because the title company said they are required to report "the total sale price" of the house on a 1099 for both my brother and I. The sale price is $99K. But after escrow pays off the mortgage, some tax liens and a large debt owed to his business partner, we will only receive around $1,500 each.Although the escrow officer at the title company said we would receive a settlement statement to reflect all these disbursements leaving us only $1,500 each, I do not want the sale of the house to raise any red flags with Medicaid which might put my brother's care in jeopardy or be held liable in any way as his POA. I am fully prepared to give the nursing home my brother's $1,500 share of the net proceeds from the sale of the home. But I am wondering if I have anything else to be concerned about? Is there anything else I need to do to avoid a potential red flag from Medicaid?Thank you for your time and legal advice.
Submitted: 5 months ago.
Category: Estate Law
Expert:  Attorney2 replied 5 months ago.

Welcome to JA and thank you for your question. I will be the Attorney that will be assisting you.

Expert:  Attorney2 replied 5 months ago.

What the title company and the other attorney on this told you is correct. The money could impact Medicaid and MUST be reported to Medicaid.

Although the escrow officer at the title company said we would receive a settlement statement to reflect all these disbursements leaving us only $1,500 each, I do not want the sale of the house to raise any red flags with Medicaid which might put my brother's care in jeopardy or be held liable in any way as his POA You would only be looking at fraud if you fail to report the income. Are you online with me?

It is too bad estate planning was not involved to set up a special needs trust for your brother. Where in Texas are you located so I can provide a link for local attorneys that provide FREE consultations that can assist you?

Expert:  Attorney2 replied 5 months ago.

Please do not hesitate to ask me additional questions that you may have with regard to this matter.

If you would be kind enough to rate my service positively I would appreciate it.

Expert:  RayAnswers replied 5 months ago.

Ray a new expert here.Are you the executor of the estate or do both of you have legal title?