What should I do with my mother's Social Security deposits if her nursing home is 100% covered by Medicaid?
My mother is 81 and in a VA nursing home with Alzheimer's. My father passed away last year. Mother's nursing home costs are paid 100% by Medicaid. Mother is still receiving a small Social Security direct deposit to her checking account. She still has a few minor expenses but the balance of her account is increasing each month. I have financial POA. What should I do with this money? Do I just let it accumulate? Should I invest it for her? Will Medicaid attach this money after her death? I want to handle this in the most advantageous manner but do not know what is allowed. Thank you.
Expert Answer
In order to maintain her eligibility for Medicaid, her countable assets , such as a bank account, may not exceed $2,000. She is allowed to prepay a funeral. You could use her excess funds for this purpose. You can also purchase clothing, a radio, a television or other items of pesonal property for her. If your durable power of attorney provides for it, you can also be paid a reasonable amount for acting as her agent.