Legal Question in Elder Law in Massachusetts

Re: Jwtos

Assuming these funds are your mothers and not yours, unless the funds are spent on funeral arrangements and if they are more than $2,000 then medicaid and the Nursing Home must use them before medicaid will pay for your mother's care.

I would suggest you make arrangements for your mothers funeral now, which you can do, and prepay it.

I would have to check to see if you can do this after your mother entered the home.

Most nursing homes have financial advisors and they can let you know.

If you have additional questions, please feel free to contact me.

Re: Jwtos

Depending on the amount in the account, the origin of the funds, and the title of the account, the nursing home may be entitled to it, up to the amount over $2,000. If the account is "earmarked" for her funeral exopenses, is it designated as a funeral account? Have her funeral expenses been paid in advance (which is permissible - although is usually done before entering a nursing home)? The nursing home administration may be able to assist you with the funeral expenses qusestion.

Please call me if I can help you with anything. This office specializes in elder law and Medicaid planning / eligibilty. Best of luck to you and your mother.

Re: Jwtos

In general, your mother must be down to her last $2,000 in "countable assets" before she may qualify for MassHealth nursing home coverage. Merely intending that the investment account will be used for funeral expenses does not work -- the funds must be either in a qualified burial trust or a prepaid irrevocable funeral contract.

Jointly owned investment accounts are treated differently than jointly owned bank accounts under MassHealth rules. Depending how long ago your name was put on the investment account, there is a possibility that you could lawfully claim that up to one-half of the funds are yours. In that case, you can segregate your share of the funds for her future needs. There are also a limited number of other options for legally sheltering funds so that you can be sure your mother has a good quality of life. Because of the tricky regulations in determining what is and is not a disqualifying gift, you should not do anything with the account (other than take care of the funeral expenses and her personal needs) without first speaking with an experienced elder law attorney. Otherwise, there is a real risk that you might unintentionally disqualify her for coverage.

I have been practicing elder law (including Medicaid applications and appeals) since 1998. I would be pleased to speak with you further concerning the right and wrong ways to spend down excess assets.