The estate check is for less than $5,000. My mom has mentioned to me that she wanted to give some to my sister and I. I am worried about it being seen as a gift for Medicaid. It will also put her over the money allowance for VT. My question is if we cash it and distribute it that way would it be a way to get around it? What about inheritance tax?
First of all, I know even less about Australian law regarding guardianship or whatever you call it over there than you and CWillie do. Which is why I asked the question in the first place, I didn’t expect anything more than general advice, not to be berated because I used the wrong terminology. Clearly I’m not as highbrowed as both of you and don’t have the intellect to conduct myself on a forum appropriately.
Yes I chose La Gorda as my username, So what? Yes. I am fat. But who are you Leonnie 1 to judge me. Are you CWillies mouthpiece?
Pull your head in both of you.
Try not to take this as a personal affront to your character. Seek advice from an attorney who hopefully will not charge you greatly. Get several bids
I myself lost my mother a little over a year ago. I had her in private pay but had she lasted much longer her money would have been used up and I was facing the Medicaid dilemma.
If you think I had it easy know that the last couple of years my mother suffered greatly from a very unfortunate situation at a previous private pay facility. Thankfully I was able to have her moved the last 6 months of her life. She had developed a very serious bedsore from being dropped by an unexperienced newly hire. Both her femurs were broken and subsequent convalescence involved a serious bedsore which had to be debrided and packed often twice daily in attempts to decrease the size of it. She was on round the clock serious pain medication.
I hope you find the information you need.
People here will share their personal experiences.
Never totally rely on feedback here, while very well intentioned (as) State laws may differ - and others may get different info than what you get.
You want to be sure of how to proceed.
I believe it has everything to do with how your mom's account is set up.
Is it a joint account?
Does she have her own?
Is it going into a POA official checking or savings account?
From my experience and belief: I don't know if they can track it. It seems to depend on how you process the check ... and checks MUST be deposited (in a Bank) before they will cash them (my experience). I believe it has everything to do with the ssn you use (as I had to provide mine when managing a fiduciary, soc sec payee rep., and bank account(s), and POA responsibilities.
Gena / Touch Matters
If she is on LTC Medicaid or Community based, it can be imho dealt with and done as a DIY if you have your wits about you as her POAas it’s a pretty modest sum. But you have to - HAVE TO - have a plan in place as to its spend B4 you deposit her check into her bank account. Till you do, that check in her name has to stay in limbo and undeposited.
Stuff like this will surface as the distribution done by an Executor will have all items recorded in probate court. Depending on how the Executor does their process (I’ve been one x 3) or what the State requires, there could be a 1099 issued to everyone- EVERY SINGLE PERSON- who is getting $ (the distribution of assets) from the Estate if it’s over $600 in value. (I did and there are still folks peeved about this). The IRS 1099 will show up to any X reference a caseworker does. And some States have this set to run automatically during tax season. S**** surfaces and 5K will take one over the asset limit for LTC Medicaid.
If there was a will with small bequests to other family members, were corners cut assuming that M would hand it out? If so, there may be a way out of this that don’t involve Medicaid and VT, by distributing directly to the other beneficiaries. If the check was made out to you personally, it may be that you can cash it, give M the max she can get without triggering all these other problems, and distribute the rest. Yes, it’s illegal, but it will probably work.
Alva’s advice is spot on legally. However for so many complications arising out of such a very small bequest, you may decide to risk the chance of some government department official prompting very expensive investigations to prove that it wasn’t done ‘properly’. If you hire a lawyer, and you pay them as POA, it might even reduce the distribution enough to solve the problem!
OP - as a Medicaid recipient, do not have Mom sign that inheritance check over to anyone. There ARE items Mom might need that she can purchase to keep her cash assets under the Medicaid limit in your state. Hearing aids, new dentures if needed, maybe a lift chair or adjustable bed and as other have suggested, a prepaid burial trust. Speak with an Elder Law attorney so Mom can benefit from this inheritance.
And you do not understand that your mother cannot GIFT you and Sister?
You should now go to see an Elder Law Attorney to learn about the rules for being a POA in your State. You should also do online research in how to keep meticulous records, into gifting and what can be done and into "self-enrichment" as a POA.
You should know that your mother's funds stand to pay for this attorney.
This attorney will also give you options about this cash, and how to handle it.
Being POA is a legal fiduciary duty that is held to the very highest standards. You cannot plead ignorance before the law if things go South. So do see an elder law attorney at your earliest convenience.
I served as POA and Trustee of Trust for my brother, was assigned the duties five years ago. Came here deparate for help. Had a great attorney. Was a steep learning curve but am so proud at how well ultimately it all went. GOOD LUCK to you. We all start just where you are.
Get expert help; that's something you CAN spend on as POA. As well as future funeral needs/cremation, etc.