I was made POA for my Mom while she was in a nursing home. I never signed ANYTHING with the nursing home at all. My Moms atty filed for Medicaid and I maintained paying her bills. I NEVER used any money of hers for my personal use...all bills were paid for her solely...mortgage pmts, utilities, credit cards, health insurance. Now I am being sued for the outstanding balance of $100,000 because I am the POA. My sister in law (we do not speak) had signed the admission agreement with the nursing home....I have NEVER signed anything with the nursing home at all. I do own my home, I am on a fixed income, retired and disabled and I have a mentally retarded son. I don't want them to attach a lien on my home because that is all I have......HELP!!!!! AM I RESPONSIBLE IN ANY WAY.....THE SS BENEFITS HAVE SINCE BEEN SIGNED OVER TO THE NURSING HOME DUE TO MY REQUEST.......PRIOR TO THEM TRYING TO SUE ME.
100K is a really large amount. If this is a year of NH costs, then 100K makes sense. It could be that the NH finds itself not being paid by the state for the 1 year of care due to the noncompliance done by you as the POA for not paying the SOC until just recently. So that is why you are getting the bills on this and potential for a lawsuit to pay the outstanding bill. You as POA have the responsibility on this.
Medicaid doesn't care if the applicant has bills, a mortgage, insurance due, or whatever expenses. They fully expect all of the monthly income to be paid as the SOC. This is required to be in the program. If there is a home, either family private pays for everything on the home for the rest of the NH residents lifetime if they want to keep mom's house OR the house is sold with the proceeds going towards their care. (If there was a caregiver, some states can do the caregiver-house exemption at the time of application.) But whatever the case, the NH must be paid the SOC for them to be on Medicaid.
Not to sound harsh, but you as POA did not do that and therefore you as POA did not do your fiduciary duty nor your due diligence on the details of your mom's situation as POA. Saying "I didn't know" doesn't wash as an excuse. If you were named POA, you have the responsibility to understand what is required. The NH assumes you understand what a POA is. Now did the attorney have a responsibility in all this, probably yes, but I bet he did whatever as your mom's attorney and not as yours. Did your SIL have a responsibility in all this, probably yes also, but you are the POA and not her. You should get your own attorney which you pay for with your own money to work with you on all this - it is not going to be simple and 100K is a lot of $ to have as a judgement against you.
Out of curiosity, what is the status on the home? Sold? Rented? Empty? - could something on the home have changed since mom applied so that she has assets from her house that has changed her Medicaid status?
Additionally, I highly recommend you get the following book "How To Protect Your Assets From Devastating Nursing Home Costs - Medicaid Secrets" 2014 Edition: Expanded, Revised, and Updated. By author K. Gabriel Heiser, Attorney.
You can also get your specific questions answered for free once you purchase the book. You can view other's questions at (www. MedicaidSecretsForum.com) If you put the title of the book in your browser, it will bring up the web site for his book (at least read about the book, you'll be glad you did) It is also available on Amazon. It took about 3 days for me to receive it after I ordered it. Cost $47.00 but well worth the money. Anyone that has elderly parents needs this book. All the different situations and scenarios are priceless. A wealth of information that you need to know and act upon now You can have it delivered overnight for an additional cost. The book also tells you how to choose an Elder Law Attorney for your specific needs.
What it sounds like is,
Medicaid is looking back the 5 yr look back and $100,000 is uncalled for or unaccounted for and they want to know where it all went.Sounds like your Mother is attempting to apply for Medicaid inorder to stay in the nurcing home.$100,000 is missing.Medicaid wants to know where it went.Regardless,Past bank statements and transferred assets will answer where the money went.
Wish this was easier.
Has your mom died? POA ends when the person dies. If she's dead, you are not POA. If she's alive is she still in the NH?
How do you know you're being sued? Have you been notified? Served with papers? Or is this just a threat from the NH?
Is your mom on Medicaid? Once her Medicare stopped paying did you begin to pay the NH each month with your mom's benefits? Were you applying for Medicaid at this time? Was she approved for Medicaid?