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