Elder Law Answers
Can Medicaid Take My Mother's Settlement Money From a Lawsuit Against the Nursing Home?
My mother went into a nursing home six years ago after she broke her hip. She receives Medicaid benefits. We intended for...
Read moreHow Will Medicaid Treat My Mother's Repayment of a Debt to Me?
- March 27th, 2014
Q
Many years ago my mother borrowed money from me – a couple times. She kept notes of what she borrowed. I also helped her pay down a credit card debt. Two years ago I asked her for repayment and she wrote me a check for $2,000 to pay off this debt. Now she is applying for Medicaid. Do I need to pay back this money? We have no paperwork except for the check.
A
That’s a tough one. If you prepare a detailed affidavit concerning the transactions and especially if you have your mother’s notes from when you lent her the money, as well as checks from you to her, Medicaid should accept the $2,000 as repayment of a loan. Without that kind of proof, the Medicaid agency may not accept your explanation and may treat the repayment as an asset transfer. I’d advise making your case as best you can just in case you’re successful.
For more on Medicaid's rules, click here.
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