QUESTION
Can my 94-year old dad, who just sold his home and moved in with my family, contribute to bills without financial penalty?
Asked on Apr 19th, 2017 on Elder Law - Pennsylvania
More details to this question:
My dad is 94; he recently sold his own home for less than $80,000 profit. He is lucid and physically able. Besides the home profit, he has maybe an additional $75,000 in savings. He moved into my home 4 months ago and would like to contribute financially, but I don't want to endanger my home / savings in case he may eventually need managed care / Medicaid. Can he pay for modifications to the house for his benefit - like a new shower on first floor, or redo front steps for easier access? Can he contribute / pay for "service" type bills, like electric bill, water bill, gas bill? Can he pay for repairs to the home, like new roof, new windows? What limitations, if any, on cash gifts to the family? I do not need his assistance financially for the house mortgage or bills, and the house was paid for with my money. He just wants to help.
1 ANSWER
Business Law Attorney serving Pittsburgh, PA
at
Fiffik Law Group, P.C.
Update Your Profile
Yes your father can contribute financially. The concern is that his financial contributions may be deemed as gifts and result in a period of ineligibility for long term care medical assistance if he eventually needs skilled nursing care in a facility. So his contributions should be done w/in the context of a written agreement. It's entirely appropriate for him to pay something for his room and board. You should consult with an Elder Law attorney to assist you with this process and to give you additional advice on how to preserve his assets and plan for the potential need for medical assistance.
Answered on Apr 20th, 2017 at 8:24 AM