Elder Law Answers
Will Medicaid Count Assets That Are in an LLC?
All of my father's assets are in a trust. If he transfers the assets from the trust to a limited liability company (LLC) a...
Read moreWill Medicaid Count an Investment Gone Bad As an Asset?
- March 23rd, 2015
Q
My mother has been in a nursing home for the past three years. Â When she went to the home I had control of her funds through a power of attorney and have spent almost all of about $350,000 on her care. I did also make an investment that she and I had planned before she became incapacitated that did not work out. Â We lost roughly $80,000 between the two of us. Â Will this be held against her for Medicaid purposes? And if she has no money other than Social Security and two small retirement payments, what happens?Â
A
It probably depends on the investment and the facts. If your mother made an investment that didn’t work out with an independent third party, it should probably not be a problem. But if, for instance, she was investing in a company you were starting, it will look more like a gift to you. In addition, it could depend on the documentation of the investment. If there’s proper paperwork – a stock certificate, for instance – it will be more likely to pass muster with Medicaid. A local elder law attorney who looked at all of the circumstances should be able to provide a more definite answer.
For more on Medicaid's asset transfer rules, click here.