My 74-year old, mentally disabled brother "Rob," fell and broke his hip five years ago. He spent around two months in the hospital, but never healed enough to walk without assistant, and now uses a wheelchair. He was transferred to a longterm nursing home from the hospital. My other brother and his wife have power-of-attorney for Rob. They applied for Medicaid for him, and they live in the same city. Prior to breaking his hip, Rob lived in his own home, and was carefully monitored by my brother and his wife. Four years ago his home went into foreclosure and was auctioned off by the county for taxes due. A week ago, we found Rob's name on a list, published by the county, for people who are owed a tax overage refund. Rob is due a refund of $15,000. My sister-in-law is afraid to claim the money for Rob, because she is afraid he will lose his Medicaid. Is that true? I have done a lot of research online, but have not found any information about this specific situation. Rob definitely qualifies as a hardship case, because he needs 24-hour nursing care, and does not have any family who is capable of providing that level of care in their home. I lived with Rob in his home for 10 years, until 1999 when I moved out of state. Rob, my other brother and his wife all live in South Carolina. Are there any exceptions that would allow Rob to receive the refund, or my sister-in-law to receive it on his behalf without jeapordizing his Medicaid eligibility? My brother and his wife buy anything he needs, such as clothes, grooming supplies, snacks and TV.
$15,000 is a lot of tax - unless he had an expensive home and/or high tax rates, that would span several years.