No other income, no savings. She lives in a co-op complex. At some point she made two siblings beneficiaries to the share equity of her unit -- about $7,000 I am told -- "upon her death". The notarized document is on file with the cooperative. A Medicaid application is in process. If Medicaid is approved, and her social security and pension goes to the nursing home, where do we stand with the shares that were bequeathed to her kids and notarized, "upon her death"? I am her legal guardian but not at the time of the notarized bequeathment. Does Medicaid approval supersede that document and take the shares?
True Co-ops are pretty unusual for ownership as often your ownership is a %, but it’s a % of the overall undivided interest in the entire building or property. Being undivided interest kinda imo makes it an inaccessible asset for Medicaid. Co-ops usually have a board who governs over all and can determine how, when & to whom “ownership” can pass or transfer or even sell to. Like a generational transfer is allowed but she can’t actually on her own sell her % on the open market easily.
Please realize that IF there is an association or co-op fee it has to be paid. If mom goes onto Medicaid, mom will not have $ to do this. So you kids have to pay all costs on the co-op from now till beyond her death when you can finally get it transferred. Look at the documents to see what happens if there’s coop costs and what happens upon default.
To me, Co-ops are similar to mineral rights in that they both can be based on a % of an asset that is within undivided interest so not easily accessible. For mineral rights for Medicaid, for the TX & LA application and renewals if they are actually in royalty payout mode, you just include the pitiful royalty $ as income and do it based on an 12 mo. amortization. Medicaid can’t make you sell it as you don’t actually own the wellhead, you don’t own the oil or natural gas line.... what you have is a % (often a % within a %) ownership within an overall oil&gas field that’s output determined by the exploration Co. The analogy is mom has a % ownership of the building but what happens within building is determined by the Co-op board. Their inaccessible assets.
I’d suggest you really carefully review to document to see just exactly what her % in the co-op means as a asset and if it’s with a true liquid $ figure. And do this ahead of ever applying for Medicaid. If your not clear what’s what, then you need to get with a real estate atty to review it for you all. Good luck and let us know what happens as we all do learn from each other.
My sister placed mom in a nursing home following a brief hospital stay because she didn't want to take care of her. I think she may have shot herself in the foot. Haha? My actual concern is, though, the notarized document naming two sibs as beneficiaries. The money still belongs to my mom until she dies, but now medicaid will be involved. Apparently my sister didn't think ahead, and she will have to eat the cost of any attorney to secure her little chunk of change.
I'm just trying to collect information before the actual sit-down, something I'm not looking forward to. I don't care about the shares, but I am the legal guardian so now I am involved. Not going to lie about anything either.
It depends on how the shares are going to pass to the siblings and what the laws are in your mother's state. For example, there are exemptions made to protect the residence for children who live with their parents in the parents' home and who provided care to the Medicaid recipient for a period of time before the person went to a nursing home. There may be other exemptions.
A consultation with a lawyer who is well versed in your state's Medicaid rules is in order.