Message Font: Serif | Sans-Serif
 
No. of Recommendations: 5
Since elder care laws can be very state specific, I would suggest looking for an eldercare attorney where your father resides.

Although my older brother does have power of attorney, he and my younger brother are reluctant to actually spend dollars from my father's accounts so we are splitting up each expense and paying ourselves. I feel like this is not wise for several reasons but have not convinced them yet.

1) If your father has any income tax liability at all, it is best to pay his medical expenses (including nursing home care) from his accounts, so that he can get the medical expense deduction on his taxes.

2) If there is any chance that his cost of care will exceed his assets (keeping in mind that patients with dementia can live for several years), so that he will need to use Medicaid, you and your brothers will have spent money on his care which probably would have otherwise been covered by Medicaid. (Note - it is important to choose a care facility that will allow private pay patients to stay when they outlive their assets and their care needs to be covered by Medicaid. Again - you will need a local eldercare attorney to help you navigate the laws in your father's state.)

AJ
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.