My husband has power of attorney and guardianship of my father who is in a nursing home. He pays the nursing home from the social security, medicare and veteran's benefits he receives. We had to liquidate his assets down to $4,000 which we were allowed to keep as a maximum balance in his checking account. Pretty much the SSN, Veteran's benefits etc. checks hit the account and then are paid to the nursing home. The $4,000 remains in the account as the balance we are able to have in it per law. When he dies, what happens to the $4,000? Does Medicare or some other agency claim it or does it go the heir, which is me?
Just curious so we don't misstep and get into trouble.
I'd also suggest that you sit down and look at dad's situation to determine if his will might or might not even need to be filed and go through probate. If he is on Medicaid and VA and has no assets (no house or car), then you may not even need to do probate. If he is on Medicaid and has a house, then you will need to do probate and deal with the MERP program (estate recovery) to get Medicaid's claim or lein on the property released so you can transfer ownership as per his will. Otherwise, you should be home free with nothing to be dealt with or owed.
Did anyone mention keeping his bank account below 4K? This is important and that if you let the amount build up and it goes over 4K, then he is not at whatever your state has as it's impoverishment amount and he is out of complaince for Medicaid and get's kicked out of the program till spent down. For example, my mom is in TX and every month all her income less the $ 60 a month personal needs allowance is paid to the NH. Now her income gets paid to her personal bank account direct deposit and I write a check to the NH. BUT every month her account grows by the $ 60 allowance. If I do nothing, then at the end of the year, her account is increased $ 720 and her account when she went into the NH was at $ 1,500 so add $ 720 to that and she is $ 220 over the asset limit. So you kinda have to spend their allowance so you don't get stuck in this paperwork jumble.