elder law problem

[salin07]

my 85 year old father lives with me ( mom is deseased). we recently updated his will. his only assets are an annuity and social security and an income from the sale of his home deposited monthly into his checking account, my name is also on this account. i have power of attorney also. i am his only child and sole bennificiary. lawyer said that if dad goes into a nursing home they will take all assets (except his auto) before medicaid would help him. told me to take my name off checking acct. and use POA to sign checks. i went to the bank and they said they never heard that before and advised me to leave my name on because if he should pass on, the POA would stop and i wouldn't be able access those funds to pay any bills. i am so confused...what kind of problem would i have being a co-owner on that account. also dad has been paying for some utilities and other things. i take care of him and take no rent. he insists i use some of his money. i don't want trouble from medicaid by doing this. the only way he will ever be put into a nursing home is if i no longer can care for him at home. what can i do?

 

[lwpat]

On the joint account the money would pass directly to you on his death and not go into his estate. I don't know why the attorney would advise you to do that. Maybe someone else has an idea.

The attorney is right about Medicaid. You may want to draw up a lease agreement for the rent and a contract for his care. You can then take that money and put it into a separate account to pay for some of his needs later if he does go into a nursing home. You will have to show the money as income so that is a consideration.

 

[salin07]

i am still confused, dad has been with me for 5 years. last year the bank advisor said to start using some of his money because if he goes into a nursing home at this point they would take everything. we have been paying for most utilities and other household expenses from his acct. with dad's ok. now after seeing the attorney that revised his will, he says dad can pay for some things, and to use his annuity to prepay his, mine and my husband's burials and to get him a newer car. those were things medicaid couldn't touch. he is pretty much telling me not to use his money or it can come back to bite me. my dad is so upset because he says his money is my money....he doesn't get it. can't understand why he can't just give it to me. i do everything for him and it is so sad to see him like this.
i have no clue on how to draw up a lease and contract for his care and what to take out of his acct. for that. does that mean taking my name off checking? i really do appreciate your help in this matter....i am so in the dark about stuff like this.
thanks, salin07

 

[lwpat]

Since you are the POA, he cannot just give you the money. He can pay you for his care but it needs to be documented and reasonable. That is why I suggested a contract. It can be based on a percentage of the fair market rental of the house, food, electrical, your time, etc. The key is just to document the agreement while he has capacity and it can even continue if he has to go into a nursing home. It is fairly simple and the attorney can prepare it. Prepaying for the funeral is an excellent idea.

You do not need to take your name off the account in my opinion.

 

[salin07]

new problem

it has been over a year since we made the decision to purchase a car for dad. at that time he was still driving. he is unable to do so anymore. and when we take him places his pontiac vibe is too small for his wheel chair and very hard for him to get in and out of. we want get a van because of the sliding doors. a van is more expensive. because he had a fender bender...car was repaired is still like new, but it still can't get top money for trading or selling outright. do you think there is going be a problem down the line if i up-grade his car? at this point he is not ready for a nursing home but getting harder to take care of. i just don't want to do the wrong thing. would appreciate your input. thank you, salin07

 

[Adverse]

I am not an attorney so I am reluctant to give you advice. I feel it is better that you find it for yourself, and it is readily available using Internet search engines.

I have dealt with exactly the same problems with my Dad and my Mother, both deceased, a deceased neighbor, my wife's Grandmother, deceased, my Great Uncle, deceased, and my Great Aunt, in an nursing home.

The answer to the Medicaid question is readily available. Google Medicaid, 3-year lookback, 5-year lookback, or Medicaid Lien.

Google Power of Attorney v. Joint Account for your banking question.

My Dad's car sat in the same parking spot for his last year.

My mom's taxi driver took hers away one day, after he put the distributor cap back on, after I put it under the driver's seat. I had to drive 600 miles roundtrip to do that.

I'm not cruel, it's just that the cops found her asleep in her car at 6 AM in a Wal Mart parking lot 100 miles from home, she caused an accident on the Interstate, she would forget she drove some place and call a cab to take her home, she didn't renew her drivers' license because she knew she couldn't pass the test, and because when the cops would pull her over she would not open the door or roll down the window, she would just stare straight ahead and then drive off.

I know because they would call me and say something like, "We can't take her car away and we can't put her in jail."

& I'm looking for a Vibe, and we drive salvage cars, so . . . Really.

As far as advice, which I promised not to give you because I am not an attorney, let me give you the advice both my Mom's and Dad's estate attorneys gave me, for when the time comes for you.

Make sure you follow the letter of probate law precisely, because of prying eyes. I did follow the letter of the law, there were prying eyes, there were objections at the closing of the estates, and they were disallowed.