Mom 74 was diagnosed with Alzheimer’s and dementia not to long ago and is showing a fast decline. Now she has a hefty bank account and wants to divide it up between myself and my sister. If she does end up in a nursing home within 5 years does this home legally have any rights to that money she gave to us? Location: PA
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Get a lawyer. She needs Medicare and Medicaid if she is going to be in a nursing home full time and yes, they do a 5 year look-back. A lawyer can advise you on how to allocate Mom’s money, like gifting certain amounts to you kids etc.
>does this home legally have any rights to that money she gave to us?
Not directly, but if she gives away all her money and ends up on Medicaid, Medicaid can come after any assets she moved within the 5 year “lookback”.
Your mother should see an estate attorney who specializes in legal ways to protect assets from Medicaid. There is a tool called a Medicaid Asset Protection Trust (MAPT) that may be appropriate.
You should also be aware that if she runs out of money the nursing home might kick her out. The nursing homes that accept Medicaid have a reputation for being much less pleasant than the ones that are privately funded.