I am trying to find out about the laws concerning my mothers financial situation as she is in a nursing home and I don't want the state to get a large chunk of her money if anything happens to her. I have power of attorney and I need to know what to do with her savings, CD's and her house. Do I need to cash in her CD's and invest them to make more money for her care, sell her house, ect.
2006-08-03 15:36:52 · 2 answers · asked by explorer 1 in Business & Finance ➔ Personal Finance
DO NOT PUT ANY OF THE FUNDS OR THE HOUSE DEED INTO YOUR NAME TO KEEP IT FROM BEING USED FOR HER CARE! That would be fraud. The lookback period for fraud is 5 years, so you would need to have removed the things from her name 5 years BEFORE she went into the nursing home for it not to be considered as her assets to be used for her care.
As Power of Attorney, you can cash out the CDs and invest them in other things, as long as the proceeds go to her care. You have to take care that you are being financially prudent in those investments, and are not risking her money.
Her assets need to be used to pay for her nursing home and medical expenses. If it all gets used up for her care, and there isn't any left for her heirs to get, oh well.
The government shouldn't be paying for her care as long as her assets are available to pay for that care. The taxpayers shouldn't have to pay when she has assets available.
(I'm not saying that you're planning on defrauding the government, since I don't know you. I'm just telling you what the government looks for.)
2006-08-04 07:44:30 · answer #1 · answered by Mama Pastafarian 7 · 0⤊ 0⤋
On the CD's...you might want to look into a life insurance policy with a cash value. A Universal Life Policy or a Variable Universal Life...Or a whole life. Cash benefit with a death benefit.
GET with an attorney about the house.
2006-08-03 15:42:18 · answer #2 · answered by Bruce B 4 · 0⤊ 0⤋