My Mom received my Dad's inheritance from his Mother when she passed. It was split 3 ways between her, my brother and I. My 1/3 was never fully given to me and my Mom wants me to have the rest of it now! It's less than taxable "gifting" amount. Will Medicaid frown on this, even if it's in writing, signed by my Mom and notarized?
You would have to prove that you were not in receipt of your portion of the inheritance and that could be a challenge, because Medicaid has seen and heard every excuse in the book, they don't just believe what people say. You have to provide bank records and cancelled checks, along with the distribution records, any probate documents proving that you were a named beneficiary and possibly more.
If you have all of the proof, not just a written statement from those involved, then you could always risk a penalty and take the money. Are you prepared to care for her in the event that Medicaid says it's a gift?
IMO There’s 2 big hurdles in all this:
1 you’d have to in some way provide valid documentation as to why instructions in a will or the probate distribution of assets was done this way & why it’s legit and all done by an attorney. Ideally would be the atty who did your dads probate. Like you could have been a minor at the time. This will have costs to be done properly.
2. whether or not Medicaid gives a rats butt as to what whaddacouddashoudda happened ages ago w your dads estate.
If your mom now has dementia, she’s not competent or cognitive to answer questions or sign off on a document. Does she have dementia?
Who is her POA? if you are her DPOA, then you cannot be doing any actions to get this money. It looks like “self dealing” and is not allowed for a POA to do this.
Why did your brother get his $ (1/3 share) but you didn’t? To me, he will have to be willing to do his own statement as to the $ he received as per his fathers will and what his understanding was as to your share of 1/3 of dads $, and why you were not paid out as well. Would he be cooperative? & in your favor?
IRS tax free gifting is only 15K. So the amount of $ your talking about here is less than 15K, right?
If your mom is looking to file a LTC Medicaid application, she’s going to be required to submit 5 yrs of all her financial documents. The $ to you will be obvious and will kick her application to a overall closer look at all her banking in detail. It could stall her application for months. Even if mom & bro we’re able to do notarized documents drawn up by an attorney….. her Medicaid application review could be delayed. The NH she is in will not be ok on this. Even if mom is paying the required copay of almost all her monthly income to the NH, the fact that the State is delaying thier payment to the facility for her room&board, will have the NH unhappy. NH can require you or you & bro to personally sign off to be financially responsible for your mom’s bill till whenever the state makes an eligibility determination. OR NH does a 30 Day Notice to mom (Move by or eviction). & Honey, it’s gonna be way way WAY more than 15K in private pay owed to the NH - that Nh is expecting you to pay - should an transfer of assets review happen to her application.
Personally I’d forget about the less than 15K and chalk it up to a learning experience. Like make it your mantra to never ever leave $ on the table again in your future.
Your explanation of how costly this move could be is right on and the advice to leave the money alone is spot on.
If this is not the case and the amount is less than what's taxable, then take the money and don't worry about it. Do you provide caregiving to your mom who is not in a nursing home now? Does she live alone or with you or another family member?
That money can be accepted by you for 'caregiving' that you provide for her. If her dementia has been diagnosed by her doctor and it's documented, then none would question that caregiving services are necessary. You can also accept it as rent/room and board too if she lives in your house. You won't be the first person who's done this.
There are ways of getting around it with Medicaid when you're dealing in small amounts of money. People almost always fail to see the difference between dealing with the requirements of Medicaid and the financial demands of a nursing home. There is a big difference. Medicaid is reasonable. They do not pull under-handed and shady actions that nursing homes do to get every penny as fast as possible. If your mother has to go into a NH don't worry about them. True, they will try to shake you down and make all kinds of threats because they want every cent up front and then some. They really can't make good on any threats though. You can deal directly with Medicaid. They're far more reasonable than any nursing home administration.
Mom inherited Dads portion of inheritance left in his Mother's will? Now in the Will did she say that if any of her children were deceased upon her passing, the childs portion would be split between the spouse and any children they had together? And if so, why did brother get his third but you didn't get your complete share. Its the Executor and the lawyers jobs to make sure beneficiaries get what is coming to them. Each beneficiary gets their own check.
Or did Mom choose to split it 3 ways. And then again, why didn't you get the complete amount at the time. With this scenerio you are kind of up the creek with no paddle. I agree that your ship has sailed at this point. Mom now has Dementia and can't authorize the check. You as her caregiver, maybe POA, shouldn't take any money over what you need to spend on or for her. You can't pay yourself unless the POA states it. She can't sign a contract paying you to care for her. If she needs Medicaid within the next five years, a large amount of money withdrawn from her account is going to be questioned.
With a Will leaving you the money may help but with Medicaid it may not. But I have a feeling Mom split it 3 ways on her own. And if you didn't get the balance before now you are out of luck. Do you have anything in writing that Mom owes you the balance. Is brother aware you didn't get the full amount promised?