My mother is in a nursing home and we don't believe she will be able to go back home. At best she will be able to transition into the assisted living. I have hired a Medicaid professional to help her protect her assets and apply for and/get Medicaid. The Medicaid professional is asking me to sign a contract with my mother which essentially puts responsibility for her care on me - which he says will be fine because Medicaid will pay for her care when she is approved. My concerns are that he says I have to report this as my taxable income, that I have to take title to any of her non-exempt property (a mobile home, $5K piece of raw land and her conversion van). He says he does these transactions all the time and they are a legimate way to protect my Mom's assets. I am concerned about the affect on me. Please comment. Thank you.
2 Answers from Attorneys
The contractual arrangement, as described, is often used under Florida medicaid
rules to qualify for medicaid and the property exemptions, such as homestead. Any
income received for care provided to your mother is taxable income, but it will not
likely be significant; many would prefer to receive such income. There are various
ways to handle the ownership of homestead or other properties to qualify for
medicaid requirements. Generally, the proposed agreement should be reviewed,
understood, with consideration of options.
I suggest you get an attorney to handle this for you. Anytime you sign a document stating you will be responsible for payment is just that "you will be responsible for payment". There are things estate attorneys can do for you that will protect the assets of your mother and allow for medicaid to pay for her nursing home care.
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