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Mellie, Lawyer
Category: Legal
Satisfied Customers: 394
Experience:  trial lawyer
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I am looking to apply for medicaid for my 85 yr old mother

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I am looking to apply for medicaid for my 85 yr old mother for Nursing Home. She is currently on Medicare. She has dementia...very confused. Since I am her biological son (I also have Power of Attorney over her) and I am currently on SSD (since 2003) Can I transfer her investments her investments (Mutual Funds) into my name in order to qualify her for Medicaid? Do I have to put it into a so called Special Needs Fund? Or Sole Beneficiary Fund? Or can I transfer it to y name as use it as I wish (FOR HER GRANDCHILDREN?)
JA: Please give me a sec to read that.
Customer: ...
JA: Thanks for your question. We'll do all we can to help. What state are you in? It matters because laws vary by location.
Customer: My mother and I are in Florida
JA: What steps have you taken so far?
Customer: Just getting info in order to start the Medicaid application process
JA: Anything else you want the Lawyer to know before I connect you?
Customer: NO
Customer: replied 10 days ago.
My mother and I are in the State of Florida
Customer: replied 10 days ago.
Me (her son) is getting Social Security Disability.......If I transfer her Mutual Funds (to qualify her for Medicaid) will I be legally be allowed to use those funds for her intended purposes (HER GRANDCHILDREN).....I don't want the monies......

Hi. My name is***** will try to help you with this.

Unfortunately Florida has what is called a 5 year look back period.

In other words Florida will look at any gifts/transfers your mother has made in the past 5 years to reduce her assets so she qualifies for Medicaid.

Having determined the total of such assets they then calculate the transfer penalty as follows:

The divide the total of her transferred assets by $9485, the cost of one month of care on Medicaid.

The result of that calculation is the number of months you will have to use her assets before Medicaid takes over.

I know this is not good news.

If you want to see if there is any way you can avoid/mitigate this you can contact a lawyer for a free/reduced rate 30 minute consultation.

This look back procedure is in all the States, The only variation is the number of years. New York, for esample, has a ten year look back period.

if you have another question please let me know.

If not please submit a 5 star rating so JA can pay me for the attention I have given your question.

Thanks for using JA.

Customer: replied 10 days ago.
I am asking about the exemption law concerning social security disable child transferring her mutual fund investments......What do you know about that?
Customer: replied 10 days ago.
I already know about the 5 year look back in Florida.....

OK, dealing with the transfer to you as someone receiving government benefits as a disabled person.

That transfer to you is exempt frooum the look back and will not affect your mother getting Medicaid as you know.

Since you may be on Medicaid in the future you will want to transfer that money to your children so it doesn't get caught in a 5 year look back in the future.

Your Disability Benefits will not be affected by receiving this money since there is no income elgibility criteria.

Customer: replied 10 days ago.
I understand everything you're saying but if the monies is transferred to me can I use that money in any way I wish? My mom intended it for her grandchildren. NOT ME.....Will I be legally free to help my mothers grandchildren???

Once the money is transferred it is yours to use as you choose, as she would prefer or any other way.

If you have another question pleaase let me know.

if not please submit a 5 star rating so JA can pay me for the attention I have given your question.

Thank you for using JA.

The transfer means the money is no longer your mother's. That's how she qualifies for Medicaid.

Customer: replied 10 days ago.
Okay Mellie I understand but......I saw a lawyer today and he said that I would have to put it in a Special Needs Fund........I saw a lawyer the day before and she didn't mention anything about a Special Needs Fund.......she said just transfer it......I have POA........who is right?
Customer: replied 10 days ago.
I was upset about the 2 contradicting information that's why I contacted you.....I needed clarity tonight..
Customer: replied 10 days ago.
I'm gonna have to find out for needs to get her application going ASAP.....very stressful

You can transfer the funds pursuant to your POA.

They don't have to go into a special needs fund . Such funds are usually created to provide disbursements to support the disabled child or to avoid affecting benefits if you are on Medicaid. This is not your situation.

You can receive the funds and use the income for your grandchildren.

See an estate lawyer about putting the money in a trust for the grandchildren with you as a trustee. That way the money is owned by the trust, not you, but you can use it as you wish for your grandchildren.

Hope this helps.

Customer: replied 10 days ago.
I want to believe you're correct......however I'm going to have to confront/ask both lawyers and get it straight from the horses mouth on this one.......I don't want to transfer her funds to me and then get in trouble for using it for the grandchildren......and of course I want to divest her assets to the Medicaid allowable amount of $2,000 with tax penalties of course. please reply/insight and that will be it for the night....had a long day...Thanks
Customer: replied 10 days ago.
without tax penalties

You're right. It is late and we've been on this chat for an hour.

Tax issues are a new area of discussion.

You should discuss the tax consequences of each plan, whether a straight transfer or the Special Needs Fund, with the attorneys you see tomorrow.

I would appreciate a positive star rating at this point so JA knows I have been working with you. Thanks.

BTW there is a lifetime gift tax exclusion of $11million.

Mellie and 2 other Legal Specialists are ready to help you
Customer: replied 10 days ago.
you will get 5 stars from me.. Thanks and have a good night. God Bless you

Thank you for the rating.

And good luck in dealing with these problems.