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Ray, Lawyer
Category: Legal
Satisfied Customers: 41003
Experience:  30 years in civil, probate, real estate, elder law
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I am caring healthy 92 mother but my brother and I are

Customer Question

I am caring for a healthy 92 mother but my brother and I are concerned if she fell or had a stroke and go into a nursing hm how do we protect the money she has in bank? I am on her checking acct but she is real funny about letting me use her money to buy something for me! My brother wants me to use it to purchase some higher end items or pay my car off since I care for her! What do you suggest I do?
Submitted: 1 year ago.
Category: Legal
Expert:  Ray replied 1 year ago.
Hi and welcome to JA. Ray here to help you today. You want her to pay you as a caregiver.You want to set this up with her tax preparer, she pays employer portion.You have to pay taxes here as employee but you have wages to file for UI benefits when she goes in the nursing home.You should have done this long ago do not put it off. $20-$25 an hour is reasonable wage her in Texas. She cannot gift you anything or transfer the assets.Texas has a strict 5 year look back at her bank records they will deny her medicaid if you do this.Since she wants to guard her account this is reasonable way to spend down the funds.Explain to her this protects here from being left unemployed and is a legitimate way to spend down her assets for medicaid. The only other option here is to rent a safety box and take out small amounts of cash and go off the grid.Arguably this is for groceries or other living expenses.Not sure if she would go along with that so it makes more sense to pay you legally as an employer with an EIN number. I appreciate the chance to help you today.
Expert:  Ray replied 1 year ago.
Reference skip down to transfers.. Medicaid allows her to pay you as a caregiver.But she has to pay employer portion of your taxes and you must report it as income.If she goes into nursing home you can file for UI benefits if you have wages on file and are out of a job at that point.It is a legitimate way to spend down her assets.
Expert:  Ray replied 1 year ago.
I have done leer law for 30 years or so, let me know if you have more follow up.
Customer: replied 1 year ago.
I can not purchase anything like a car? I'm the one that had to drive her to Dr appts store etc?
Expert:  Ray replied 1 year ago.
She can purchase a car, it is exempt as a resource and you can drive it and make use of it.Texas exempts one car no value limits thats a good shelter and spend down too.
Expert:  Ray replied 1 year ago.
Exempt Assets:Exempt assets are not counted in determining Medicaid eligibility. Exempt assets include:Homestead: Homestead of the applicant or the well spouse is exempt so long as the well spouse continues to reside there or the applicant intends to return. Note that the intent to return is not based on the actual ability to return. Texas Medicaid Recovery claims do not attach to the homestead if it passes at the time of the owner's death without going through probate.Motor vehicle: One motor vehicle, regardless of value. A second vehicle may be excluded under certain circumstances.Personal property: Exempt except for certain valuable art/jewelry.Life insurance: Cash value is excluded if the total combined face value of all policies is $1,500 or less. Term policies are exempt.Burial plan for applicant: Plan up to $1,500 if revocable, but if irrevocable, any amount.
Expert:  Ray replied 1 year ago.
I appreciate the chance to help you today.If you can positive rate when we are done it is always much appreciated.