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she pays 685 a month, the annual amount does not cover the annual taxes & home owners insurance.

There isn't any info on your profile re: Mom - My questions are:
1. Was the home ever in her name? If so, how long ago, there's a 5 year look back.
2. Is the medicaid for her? If so, and the home was never hers, then I don't believe there should be a problem, but please do get more input regarding this. Sorry I couldn't help more!

Good luck to you all!
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Reply to Mamacrow
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My Mom (95) lives in the house next door, which we own. She pays only enough to cover the main expenses. I have an itemized rent invoice (that you can make in Pages or Word) that breaks down what her rent fee covers: prop taxes, insurance, utlities, repairs/maint., etc. along with each individual cost. It's about $725 p/mo. I have it auto transfer from her checking account to mine with the notation that it is Rent for XX Month. The amount stays the same all year, transfers on the same day of the month, then I review the house expenses at the beginning of the new year to make adjustments to the new invoice. I didn't go so far as to have an actual signed lease with her, but I'm sure it can't hurt to have one. You just want to avoid any unexplained movement of her money that would cause Medicaid to think it was "gifting". Everything should have a receipt, or explanation for a paper trail.

Did you buy/get the house from your Mom originally? If so, how did this change of ownership happen and when?

Do you know that Medicaid (in most states) only covers LTC and not AL or MC? LTC is deemed as medically necessary by a doctor and usually means one is bedridden or ill/injured and cannot do any ADLs. So, even if your Mom is very elderly, she may not medically qualify for Medicaid until this happens. Then she will need to qualify financially as well.
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Reply to Geaton777
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For LTC Medicaid program, in my experience, the caseworker is looking for expenses and patterns of those said expenses to see if it makes sense. A flat rate each & every month of $685 makes sense for “rent” or for “room & board”.
HOWEVER!
what I’d be more concerned about is how you & hubs are reporting the $8,220.00 a year for your own taxes. Doing rental properties has it s own set of tax filings, depreciation done, etc. To me, it would be worthwhile to find a CPA this summer to have a plan on this years taxes, if it has not been done to factor in rental property income.
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Reply to igloo572
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Geaton777 Aug 2, 2024
Agree. We have a CPA do our personal taxes. Even though the rent is "pass through" (ie isn't making a profit) there are things that have to be considered along with the rest of your filing info.
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