I am a new Power of Attorney for my friend Carolynn. Due to some unknown financial events of her life, and ever since I have known her, she has used cash for everything. I have never seen her use a credit or debit card. Now, she recently fell and needs placement into a nursing home. She only has $18,000 in savings, and will need to spend that down and apply for Medicaid. But she has a history of always making cash withdrawals from her bank account. She would withdraw cash and put it into envelopes often times losing it. I would always find cash in envelopes buried in bags when I went to help her clean her apartment (she was also a hoarder) which I would give back to her (which she then would probably repeat the cycle). So now, will she be penalized for all of these cash withdrawals, resulting in delayed Medicaid coverage? She also has developed dementia (her short term memory is failing considerably). Thank you!
THIS is going to be a HUGE job. Unless you are an expert with a whole lot of time and knowledge you want to steer clear of this and keep your own contact as a loving visitor.
Realize once she files for LTC Medicaid, that allows for an all access pass to Carolyn’s financials if needed. Now the application will have a list of documents need to accompany her application. Like 3-5 years of bank statements, her awards letters from SSA and retirements (the end of the year letter that state to the penny what $ she will be paid for the incoming year), any real property ownership info (house, autos), her health and life insurance info, funeral & burial policy info. Could also want citizenship info. In theory the POA gets all this together and has it get attached to the LTC application which in turn goes to the State caseworker. FWIW the system on this depends on your State… like for my mom it was expected that they had hit “impoverishment” with spend down done & all documentation given to the Medicaid liaison at the NH billing office who in turn sent it up with their NH bill… but others States have a system that they can apply 3 months ahead of the impoverishment.
so if the POA cannot find what is needed, then caseworker will look to federal & state info as to what SSA pays her. And do a search of the SS# to IRS and state retirement accounts. The info will be there somewhere even with gaps, but enough to get an overall idea if gifting or transfers of assets happened. The caseworker finds this info and also has a rough $ amount that is monthly living expense are for her situation. So let’s say it’s $1234 a mo for your city. Say her SS is $1200 a month but she’s rent controlled so her mo expenses are $900 & right now all she has is 18K in a savings account. Having just 18K in savings and that 18K has been consistent for 2-3 years makes sense. She has no real $, that she even has 18K is pretty fabulous. That she has no receipts on the $300 gap is fine. The $#’s work.
But a different Carolyn who sold her home 4 years ago for $350K and now with only 18K in savings, $1200 a mo SS$ and rent controlled apt at $900 a month…… well in the words of the Handsome & Talented Ricky Ricardo “Carolyn, jue got some exsplian’ 2 jue”. If this is your Carolyn’s situation, I would resign that POA as it will be extremely challenging to be able to get her LTC Medicaid eligibility. There’s too much $ that’s MIA. For this situation, APS will come in and then ask for the court to have her to be a “ward of the State” and a guardian appointed for her.
Sometimes the best help is to be a friend & an advocate for her once she’s in the NH and just let State guardianship happen as they can do things that we as individuals cannot ever do.
Also I had to prove what he had in each bank account that he had. If she has a life insurance policy that will have to be cashed out and applied to her funeral. You would have to set that up for her if she doesn't have one. I did this for my BIL had to cash out his life insurance policy that he had for years then apply it to his prepaid funeral he had already set up.
I hope this helps you. Prayers that you get her where she needs to be and that Medicaid is approved. I was told once they are in a NH that its almost done deal with Medicaid. The NH will take all but $50 of any finances they have. My BIL had social security and a small pension so all he gets is the $50 and he was allowed to keep under $2000 of his finances for anything that he needs while he is in that nursing home. I was his rep payee for social security so he put me on all of his bank accounts so that I could get all the paperwork needed and close down the accounts after I handed everything over to the NH which I did on April 2023. They are now his rep payee which is a lot better because of his family they wanted his money and I was turned into DHS twice and once Social Security all were unfounded. Never again will I be with that side of his family.
Prayers