She's currently in a nursing home but her cash is going fast. I was told Medicaid will kick when its gone, but I (her daughter & POA) was told Medicaid will have a problem with this when it's time for them to kick in for the nursing home. Any way around this? Christmas gifts? She is down to around $60,000.00 left, but a $7,500.00+ a month that is going to go quick. She has no insurance to leave anyone. This is stressing her out.
There are no Medicaid police but her application will be denied for gifting her money away. Make sure her final expenses are paid. (Funeral). Keep receipts. I realize she probably wants to give her family something but she can't. We went through this with my MIL. We explained to her that her 3 sons were better off financially than she was. Parents always feel the need to "take care" of the kids. Let her know that you appreciate the thought, but it's not needed.
If mom is already in a facility, there will be an obvious pattern of spending as to where her $$ goes. So checks to kids & gran kids will stand out and lead to a transfer penalty from Medicaid. Family will have to private pay her costs during the penalty period too as she is now impoverished.
Really from now on, it's family who is going to need to be gifting to grandma - - robes, pjs, body wash, beauty shop credits, magazines, etc- as she will only have a tiny personal needs allowance once she goes on Medicaid .