QUESTION
My mother-in-law is a widow, 87 years old. She has a substantial amount of EE and HH savings bonds.
Asked on Sep 29th, 2011 on Elder Law - New Jersey
More details to this question:
She is first named on all bonds but all are in either or form with her daughter or grandson. As my mother-in-law is first named on the bonds I understand she is responsible for paying taxes on the interest. If her daughter and grandson cash these bonds and then my mother-in-law must go to assisted living or a nursing home will the facility then want the proceeds from those bonds even though my mother-in-law did not cash them; her daughter and grandson cashed them and they kept the money.
1 ANSWER
2 Awards
If the Medicaid application identifies that she had those bonds, and they were cashed then the proceeds would be an available resource, and giving the proceeds to the daughter and grandson would make her ineligible for Medicaid. I'm not sure how Medicaid would know that she had those bonds at one time, unless they pick that up from her tax returns, if she files returns. Many seniors do not because they are under the income thresh hold.
Answered on Dec 12th, 2011 at 1:43 PM
Diana L. Anderson, Certified Elder Law Attorney This response is not legal advice and does not establish any form of attorney/client relationship