Lives with brother in IL and pays him monthly rent and her food bill.
Questions: She wants to give us (her two kids) money now and then, but we take a few hundred here and there due to "5 year law."
Now she wants to pay for a repair to my brother's house that is 3 grand. Then she'd like to give me 3 grand so we both get the same amount.
I can't seem to find out exactly how much can she give without medicare or nursing home wanting that money back? Just a matter of time before she'll be in a nursing home unfortunately.
Thanks for your time.
Medicare does not pay for a nursing home. Medicaid will pay for a nursing home, but it is for the truly needy and has five year look back period to qualify for benefits.
Take her to an eldercare attorney who can explain all of this to you all.
I would talk to an elder lawyer before Mom spends her.
A Will will not protect her assets. If she ends up in NH her assets go to her care. There may not be anything to leave family.
But is that what you anticipate, that she will need to qualify for Medicaid in the next 5 years. Remember, the look back is not for Medicare, it is for when you apply to the Medicaid program, which you can't do until you have less than $3K in assets (exempting a farm or house/condo).
Also, double check the rules in IL--they do vary from state to state, in part because inheritence/estate laws vary state to state.
There are other ways to get around the "gifting" clause too. Like your brother can start raising her rent. He can raise it monthly and these days with inflation and all, if he started charging her an extra $100 or $150 a week that would be more than reasonable.
How soon is the family planning on nursing home placement for your mother?
Take the assets and bank accounts out of her name now. Don't spend anything past the Medicaid limit and wait. She may not have to be placed at all. If she does and the five-year look back period had not passed, then spend it down on her nursing home bill.
As for her wanting to give you both 3 grand. Your brother needs to do the work on his house for mom's safety. Anyway, I think $3,000 is still under the Medicaid limit.
https://smartasset.com/retirement/how-to-avoid-medicaid-5-year-lookback
a consultation with an elder law attorney for an explanation of what the attorney would recommend and the costs of each document is worth the cost. Your mom may have particular factors that an attorney would recognize as influencing her estate planning, that none of us would know. An attorney also has familiarity with Medicaid in the state where your mom lives.
Good luck!
A seniors money is for them and their care, not to leave an inheritance for anyone.