Q: Can a spend down plan for post medicaid eligibility include a purchase of a sole automobile with extended warranty?
My mother--who is on medicaid in a nursing home--received $25K back pay from her social security benefits. Part of her spend down plan is to buy her an automobile which is an excluded/non-countable asset. Are there any restrictions to including an extended warranty with the car purchase? The car is $22K the extended warranty is $2500.
Thanks!
A:
There would be no restriction on purchasing an automobile with an extended warranty, provided that it is your mother's only automobile, that it will be used primarily to transport her places or for her benefit (i.e. don't buy your mother a car and then you drive it to work everyday).
If she is bedbound and never leaves the nursing home it probably wouldn't be reasonable for you to purchase a car on her behalf, she would be better served utilizing another Medicaid planning strategy.
Hope this helps.
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