Legal

Ask a Lawyer and Get Answers to Your Legal Questions

Ask a Lawyer,
Get an Answer ASAP!

Legal

My mom needs to be put in a convalesant (rest) home, but

Customer Question
MediCAL will not accept her...
My mom needs to be put in a convalesant (rest) home, but MediCAL will not accept her because she has $20,000 in her CHECKING account in the bank (she is also on social security). I am her son; if I open a CHECKING (not savings) account in my name at her bank AND TRANSFER THE MONEY to my CHECKING ACCOUNT (with her permission and the banks and paperwork is signed) do I owe the IRS any taxes? I am from California.
Submitted: 2 years ago.Category: Legal
Show More
Show Less
Ask Your Own Legal Question
Answered in 1 hour by:
10/5/2015
Lawyer: Ray, Lawyer replied 2 years ago
Ray
Ray, Lawyer
Category: Legal
Satisfied Customers: 44,569
Experience: 30 years in civil, probate, real estate, elder law
Verified

Hi and welcome to JA. I am Ray and will be the expert helping you today.

No she cannot gift the money here.There is strict rules against gifting and she will be penalized for such gifts.She can do spend down here, the money can be used to pay for her care or prepaid funeral or other medical expenses.But again MediCal does not allow gifts.

Reference see look back period here..

http://www.aboutlivingtrusts.com/ElderLaw%20Newsletter/What%20is%20the%20Look%20Back%20Period%20for%20Medi-Cal%20in%20California.htm

Unfortunately a gift here under the look back rules will cause her to incur a penalty.Again you can use it t prepay a funeral or for her medical bills, or private pay for a month or two here.

I appreciate the chance to help you today.Please let me know if you have more follow up.;Thanks again.

Ask Your Own Legal Question
Lawyer: Ray, Lawyer replied 2 years ago

Here under MediCal she has to be under $k at 12:01 am on the first day of each month to be eligible..

The following property is generally exempt and therefore not counted in determining Long Term Care Medi-Cal eligibility:

  • The home: totally excluded, if it is the principal residence. The applicant must state an “intent to return to the home.” Includes mobile home, houseboat, or an entire multi-unit dwelling as long as any portion serves as the principal residence of the applicant. (See "Your Home & Medi-Cal" for more information)
  • Other real property: may be excluded if it is used in whole or in part as a business or means of self-support (you should see an attorney if you have other real property).
  • Household goods and personal effects: totally exempt.
  • Jewelry: for a single person, wedding, engagement rings and heirlooms, and items of jewelry with a net market value of $100 or less are totally exempt; for spouses, there is no limit on exempt jewelry for determining the institutionalized spouse’s eligibility.
  • One car is generally exempt if used for the benefit of the applicant/beneficiary or if needed for medical reasons.
  • Whole life insurance policies with a total face value (also called “combined death benefit”) of $1,500 or less.
  • Term life insurance: totally excluded.
  • Burial plots: totally excluded, includes headstone, crypts, etc.
  • Prepaid irrevocable burial plan of any amount and $1,500 in designated burial funds. These designated funds must be kept separate from all other accounts.
  • Cash surrender value or balance of pension funds, IRAs and certain types of annuities (you should see an attorney if you are considering buying an annuity—call CANHR for a referral).
  • Up to $2,000 in cash reserve, e.g. in savings, checking, etc., for the Medi-Cal applicant.
Ask Your Own Legal Question
Lawyer: Ray, Lawyer replied 2 years ago

http://www.canhr.org/factsheets/medi-cal_fs/html/fs_medcal_limits.htm

Good luck with your mom here, I know it can all be kind of overwhelming.Thanks again.

Ask Your Own Legal Question
Lawyer: Ray, Lawyer replied 2 years ago

There is a formula here..

So if hse did made a gift during the look back period, a formula is used to determine the number of months that the applicant will be ineligible to receive Medicaid benefits. That is called the penalty period. For example, assume that Jane transfers a $100,000 bank account to her daughter two months prior to applying for Medicaid. Since that gift was within the look back period a penalty would be applied. Basically it is the value of the gift divided by a number which in California this year is $7092. So the penalty period in this example would be approximately 14 months ($100,000/7092=14.1). The look back period requirement under DRA is 5 years.

MediCal would calculate the period here it can be six months to a year in that range.You really want to avoid this because she would be ineligible for this period. Spend down here on her medical care or her funeral or any other bills she has.

Thanks again.

Ask Your Own Legal Question
Lawyer: Ray, Lawyer replied 2 years ago

Good luck here with your mom.

If you can leave a positive rating when we are done it is always sincerely appreciated.

Ask Your Own Legal Question
Ask Ray Your Own Question
Ray
Ray
Ray, Lawyer
Category: Legal
Satisfied Customers: 44,569
44,569 Satisfied Customers
Experience: 30 years in civil, probate, real estate, elder law

Ray is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Not only did he answer my Michigan divorce question but was also able to help me out with it, too. I have since won my legal case on this matter and thank you so much for it.

LeeMichigan

< Previous | Next >

Meet the Experts:

Tina

Tina

Lawyer

8,775 satisfied customers

JD, BBA Over 25 years legal and business experience.

Ely

Ely

Counselor at Law

24,353 satisfied customers

Private practice with focus on family, criminal, PI, consumer protection, and business consultation.

INFOLAWYER

INFOLAWYER

Attorney

20,727 satisfied customers

Licensed attorney helping individuals and businesses

JPEsq

JPEsq

Attorney

2,132 satisfied customers

Experience as general attorney, in house counsel, SSDI, Family Law attorney, and law professor

Law Educator, Esq.

Law Educator, Esq.

Attorney

42,358 satisfied customers

JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law

Ellen

Ellen

Lawyer, Consultant

8,238 satisfied customers

25 years of experience helping people like you.

Guillermo J. Senmartin, Esq.

Guillermo J. Senmartin, Esq.

Attorney

292 satisfied customers

7+ years of experience handling various legal matters.

< Previous | Next >

Related Legal Questions
My mother took out a life insurance policy on me when I was
Hi, my mother took out a life insurance policy on me when I was a minor. I'm 27 now, and found out she's refusing to sign the policy over to me despite the fact I'm an adult and her agreeing to over a… read more
LegalGems
LegalGems
Juris Doctorate
10,720 satisfied customers
A life insurance policy which was cancelled in October,
a life insurance policy which was cancelled in October, November, and December, and on auto-pay has still not ceased. what to do? … read more
Legal Eagle
Legal Eagle
Attorney
Doctoral Degree
7,403 satisfied customers
We need advice on universal life insurance policy. New
We need advice on universal life insurance policy. … read more
Legal Eagle
Legal Eagle
Attorney
Doctoral Degree
7,403 satisfied customers
I want to have a life insurance policy and add my fiancée as
I want to have a life insurance policy and add my fiancée as one of the beneficiaries. The Insurance company is asking me: "insurable interest exists/what financial loss will be incurred by the person… read more
Legal Eagle
Legal Eagle
Attorney
Doctoral Degree
7,403 satisfied customers
I am a grandfather who took out a life insurance policy for
I am a grandfather who took out a life insurance policy for my 19 year old … read more
INFOLAWYER
INFOLAWYER
Attorney
Doctoral Degree
20,727 satisfied customers
I am the beneficiary of a life insurance policy and the
I am the beneficiary of a life insurance policy and the insurance company won't make the check out to me.they keep sending it to the estate of Don Sergott so the bank won't cash it. I called them and … read more
LawGuy
LawGuy
Juris Doctor
123 satisfied customers
Named as beneficiary on life insurance and wondering if upon
Named as beneficiary on life insurance and wondering if upon award, one can reassign that benefit to someone else to receive the money with similar no tax benefit or can I only then give as a gift??… read more
lucy7368
lucy7368
Juris Doctor
763 satisfied customers
My ex husband cancelled his life insurance policy that was
My ex husband cancelled his life insurance policy that was stated parties agree to maintain current life insurance policies. I still have mine. What actions can I take or can nothing be done … read more
Barrister
Barrister
Attorney/Landlord/Realtor
Doctoral Degree
35,370 satisfied customers
My wife and I were talking life insurance policies, should
John, My wife and I were talking life insurance policies, should something happen, can we have the money put into a trust with a controlled yearly withdrawal so it will last longer?… read more
John
John
Attorney
Doctoral Degree
5,864 satisfied customers
I had a life Insurance policy with All State insurance taken
i had a life Insurance policy with All State insurance taken out in 1997 for 25.000 whole life. I then increased it to 60.000 paying regularly each mos. I was told they had turned it over to Universal… read more
Olivia Kent
Olivia Kent
Managing Partner
Doctoral Degree
1,969 satisfied customers
I had univer. Life insur policy for 24 yrs The company tells
I had univer. Life insur policy for 24 yrs The company tells me that its not performing and want pay out,and I should apply for lesser policy (50,000) … read more
Law Educator, Esq.
Law Educator, Esq.
Attorney
Doctoral Degree
42,358 satisfied customers
My husbands life insurance policy was canceled from FARMERS
Second opinion] My husbands life insurance policy was canceled from FARMERS Insurance after 20 to 25 years paying for. Have copy from Farmers but do not understand. Would like my money for the time I … read more
Phillips Esq.
Phillips Esq.
Attorney
Juris Doctor
18,393 satisfied customers
Husband failed to change beneficiary of life insurance
Second opinion] Husband failed to change beneficiary of life insurance policy, bought during 14 year marriage to first wife, when he remarried. He continued to pay premiums during 53 year marriage to … read more
Michael Bradley
Michael Bradley
JD
1,193 satisfied customers
My wife and I had whole life insurance policy, with
My wife and I had whole life insurance policy, with automatic payments made every month, for over 20 years. The company changed our payment amount due, without any notification. Our bank did not honor… read more
Ely
Ely
Counselor at Law
Juris Doctor
24,353 satisfied customers
What if there is a life insurance policy on someone and no
What if there is a life insurance policy on someone and no beneficiary is assigned? Who gets the money? … read more
Legal Eagle
Legal Eagle
Attorney
Doctoral Degree
7,403 satisfied customers
Does the owner of a life insurance policy wishes take
does the owner of a life insurance policy wishes take precedence over a designated beneficiary when he states in his will that he wants the policy to be distributed to his estate.but beneficiary wont … read more
Legal Eagle
Legal Eagle
Attorney
Doctoral Degree
7,403 satisfied customers
My insurance agent set up a whole life insurance policy that
My insurance agent set up a whole life insurance policy that I did not want. I have contacted him by phone, email, and in person telling him of my disapproval, but nothing has changed. Do I have any r… read more
Legal Eagle
Legal Eagle
Attorney
Doctoral Degree
7,403 satisfied customers
My husband has a whole life insurance policy. His ex wife is
my husband has a whole life insurance policy. His ex wife is the owner. They have been divorced since 1990 and he has paid the premiums, has the policy and recently asked her to sign to change ownersh… read more
LawTalk
LawTalk
Attorney at Law
Juris Doctor
128 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x