Brookline, MA asked in Estate Planning, Elder Law and Public Benefits for Maryland

Q: How do I properly spend down funds to keep ssi/medicaid?

Good Evening,

My mother who receives medicaid and SSI saved up assets due to the fact that she moved into subsidized housing which only charged her 200 a month for rent. She currently has about 10k saved up in her account which is over the asset limit and I'm trying to spend the money down. I'm considering creating a caregiver agreement between us. I was wondering if the payment can be made in annual installments (10hrs/month)? If that doesn't work I was considering doing a "lump sum" payment over her lifetime but I can't figure out if that is legal in Maryland. As I do not live near her, the nature of the agreement would have to be for "remote work" like managing her finances, overseeing the work of her in person caregivers, shopping for her online, completing various documents for her, etc. (all things I do).

Is this a feasible approach to spend down the funds? Are there better options that allow us to retain the assets?

1 Lawyer Answer
Mark Oakley
Mark Oakley
  • Estate Planning Lawyer
  • Rockville, MD
  • Licensed in Maryland

A: You may find this article helpful, although it is a bit dated (2011) and laws change:

To clear the whole amount you might purchase a special bed for her, one that assists her in getting up, prevents bed sores, etc. If you anticipate this issue constant recurring due to excess income then a special needs trust that she funds every month with the excess income may be a solution.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.