Q: Will California deny a long term care application if asset money was properly gifted?
I am my 95 year old aunt's attorney in fact. She is in an assisted living home in Culver City, CA. I need to apply for long term care for her. She has some cash in the bank, but not enough to pay her assisted living bill which is in arrears. California goes back 30 months and says they will deny applications where money has been moved in order to qualify for long term care. My power of attorney allow me to gift on her behalf, and also includes a gifting agent. If gifted properly in order to get my aunt below the $2,000 qualifying limit, will California go back 30 months and deny my aunt's application for long term care because of these legal gifts that comply with a California Power of Attorney?
Also, the home is threatening my aunt with eviction. Can they do so. She has no place to go, and I am her only living relative and unable to care for her. Can they put her on the streets?
Finally, can the home hold me financially responsible for my aunt's bills? I signed nothing with them.
A: You CANNOT gift the money away or sell anything below fair market value without causing a penalty period for Medi-Cal to cover her nursing care bill. You can spend it but you cannot give it away.
You are not in any way liable for your aunt's care or her bills.
A nursing home can evict people but they will probably work with you if you are trying to get your Aunt onto Medi-Cal.
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