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My mom transferred ownership to my brother for his kids 529s accounts. She’s currently on Medicaid waiver in an assisted living. We are finding out now that the 529 may count as her assets. Does my brother have to transfer ownership back? What happens if he doesn’t? Can he get in trouble? What if he cashed out the 529s? I’m having so much trouble finding the answer to this. Can anyone help?? Thanks! I’m mostly curious because he told me to do the same thing and I don’t know what to do.

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Lisa; if your brother is your mom's guardian, then HE is responsible for her well-being just as though she was his child.

He will need to arrange for her to be cared for with her funds and whatever entitlements she has. It's ALL on his shoulders. You have every right to walk away and not get roped into giving up your life/career.

Just remember that "no" is a complete sentence. If you mom has put money into a 529 plan for your kids, just leave it as it is unless you hear differently from a certified ElderCare attorney.
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lisab420 Jul 2019
Thank you so much for the encouragement. I KNOW you are right! Yes she put 529s for my kids, part of the reason I first came on here was to find out what to do because he told me to do the same thing. Glad I didn't! I'll just wait, my kids wouldn't be using these funds if they're still around for 6+ years anyway.

Thanks again
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" I feel like I'm going to have to feel the brunt of this if he doesn't (me having to either pay for my mom or have her live with me.)"

Why? Why would he get off scot-free? If he can't pay back the money, then he gets to take care of your mother in his home. She's HIS mother, too, and HE (his family) got the $25,000.

I'm scratching my head as to why you think YOU have to be the one who gets dumped on because of HIS mistake. This is an example of how sons get away with it all and a daughter is expected to pick up the pieces.
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lisab420 Jul 2019
It’s ridiculous and wrong but I mean, if he refuses am I just supposed to watch my paralyzed mother be homeless? If he won’t, I have to. What other option would we have?? It’s sad. And scary!
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I am a estate planner, I consult with elder attorneys, I have seen this before in Florida, and the 529 can count as an asset, but, it depends on when it was transferred. I would call your state Medicaid office and ask them directly, as each state's guidelines are a little different, As for you doing the same thing now...don't.
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Lisa, to be honest what is worrying me now is what your brother told your mother when he asked her to transfer the accounts. The difficulty is that she did that - she "gave" the money to him. I don't doubt it was his idea, but it was her doing and it's her Medicaid eligibility that may suffer. Showing that this originated with him could get quite unpleasant.

And when you say your brother failed to complete the inventory, it does begin to whiff a bit, doesn't it. Are you able to have a frank conversation with him and spell out to him that what he seems to have in mind is definitely not clever? You need above all to find out whether he can give it back.
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Have you considered turning him into APS for financial exploitation of a vulnerable senior?

If he gets bailed out can he do anything else that would cost you?

Why can't she live with him?

I am sorry that you are going through this and feel you have no recourse.
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Countrymouse Jul 2019
Doesn't that depend on mother's take on what happened, though? She may staunchly insist that she gave him the money, and there was merely a misunderstanding about the account's status as an exempt asset. Which could be true, actually - but doesn't relieve him of the moral responsibility to give it back.
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Lisa, your mother has money for an elder attorney. She's got the money in your 529, for a start.

But the actual point is that this is your mother's problem, and she is the one who needs the legal advice if anybody does. Her money, her problem, not yours.

I have to agree that your brother makes a cautionary tale for anyone thinking through their POA choices right now.

Are you on reasonably good everyday speaking terms with your bro? Or has it always been a bit prickly between you?
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Those are questions for a lawyer. As I said on your other posts, there are legal ways to transfer the funds without affecting Medicaid elifibility but only a lawyer can tell you if your brother did it the correct way. If your mom needs Medicaid now then it is likely going to be too late to transfer the remaining 529 account & shield it from Medicaid but that is where the lawyer also comes in. It might not be too late to do it.
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It's looking like they aren't going to get the transferred 529s back to my mom. The amount was about $25K. An elder attorney I spoke with (it was a coworker of a friend so I didn't ask a lot of questions since she was just giving me free advice and limited to what she could tell me) told me that for the Medicaid penalty, the cost of nursing home care is $8200 in Michigan, even though my mom isn't in a NH, she's still in AL and on the waiver program.

So would I take that $25,000 and divide by the $8,200 = 3.04, so around 3 months of a penalty (ie: them not paying for her care??) so my brother and I would have to come up with this money? Is that how this works? Anyone? OMG I can't wait to be done with this. My head is spinning with all of the info!
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If your brother got the money why do you have to pay for her care? He did this and should have to pay the price for his choices.
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lisab420 Jul 2019
I don't think I should HAVE to but I'm just worried I may have to, because if it's her on the streets vs me paying or having her live with me, etc.. I just feel like he is going to get away with this.. :\
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I agree with Isthisrealyreal. It's not your mess, as you wrote earlier.
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lisab420 Jul 2019
It's not, but if my mom has no place to live it IS my business ya know??? UGHHHHH
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