Mother Spending Down Finances

3/10/2010 12:10:22 AM #

If the $8000 is kept in a joint account, when the individual in the nursing home passes away, the money passes to the other joint tenant – outside of probate.  If the money is held in an account in the individual’s name alone, when they pass away, it will most likely all go to the State through Estate Recovery (it depends on the amount of money the State paid out on their behalf through Medicaid, but if the person was in a nursing home for even a month – it’s probably all gone).  

That is why it’s usually wise when someone is in a nursing home that the account that holds their last $8000 (or $2400 if they are high income) is held jointly with someone else, so that there is no recovery against it.

Hope this helps!

Colleen D. Bratkovich, Esq.
Zacharia & Brown
412-751-5670

Disclaimer: Nothing in this response shall constitute an attorney-client relationship.  This is a very complicated area of the law and you should not try attempt any elder law planning on your own.  The mistakes can be very costly and Zacharia & Brown will not be held responsible for any actions you may take as the result of the information posted here.

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3/10/2010 12:11:51 AM #

You are correct that your mother may keep $8,0000 in excess resources if her monthly income does not exceed $2,022 (gross amount). If her gross monthly income exceeds that amount, she is allowed $2,400 in excess resources. The money can remain in a joint account. These funds will be attributable to her during her lifetime, and will  pass to you upon her death. During her lifetime, however, the funds cannot be accessed by you or you are in the difficult position of the DPW looking at this as a gift and a period of ineligibility will be triggered.

Also, be aware that there are exempt resources in addition to her resource limit.

Kim Orlando, Esq.
Minto Law Group
(412) 201-5525

Disclaimer: Nothing in this response shall constitute an attorney-client relationship.  This is a very complicated area of the law and you should not try attempt any elder law planning on your own.  The mistakes can be very costly. Minto Law Group will not be held responsible for any actions you may take as the result of the information posted here.

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