My question involves a person located in the state of: TX
Very elderly parent has been living with a child cor many years (definitely over the 5 for the Medicaid lookback period). During this period, parent and now late spouse, had been giving the child a monthly check towards living expenses. Child has not documented the transfers and is placing the funds in a joint account. Child is proposing hiring in home care with the parents funds that will impoverish the parent within a 2 to 3 year period. The children cannot afford to pay for either in home or custodial care without the savings of the parent. Children cannot care for the parent in the home without help. Child with whom the parent lives does not want to institutionalize the parent no matter the cost of the part time ( actually nearly full time 110 o 120 hours per week) in home care needed. Once the parent has no more resources, the parent will need to be placed in a nursing home due to the level of care required. Medicaid will need to be utilized to pay for the expenses.
I am trying to calculate the amount needed to be available to cover the Medicaid lookback penalty if child proceeds with plan. It is expected that worst case for the lookback would be a total of $60-70,000 all that has been used for living expenses over 5 years. I estimate this to be 13 to 15 months if all is included. Cost of preferred nursing home exceeds the state average but know this is not a factor in the penalty period.
Since child is continuing to receive an amount from the parent for household expenses, what is the standard for documentation for the parent's share of the expenses paid from the shared account? Should all transfers be considered gifts to the child for the purposes of the Medicaid lookback for best planning?
SLIGHTLY OFF TOPIC BUT
The state income cap for Medicaid is $2199 yet nursing home care is estimated to average $5,000/mo. How are people with income over the income cap supposed to survive when they have no resources to cover the difference between the income cap and the cost of care?