My mother in Alabama has dementia and active follicular lymphoma again and I have had to use my POA starting her March hospitalization to manage her bills and now her care. Long story short, she has Medicare and BCBS Advantage (no plan D or F stuff) is in her 100days in rehab (copay has already begun) and I am trying to eventually make her long term in her present facility and spend down to apply for Medicaid. She has no external properties/land, 200k retirement (I have started drawing what it cost to pay per month at her facility), and a house she owns (I know will have to be sold to apply for Medicaid once myself and sister clean it out), and a car (which I am trying to get relocated to myself as I am closer to her where I live). Other than paying for her facility, her bills on the house/insurances, and her car, what else can I spend her money on to help her and myself as far as keeping the money spent within the guidelines? I have no money coming to my account and I am signed on her checking to allow all bills for her care or life be seen going strictly from her account and never to me. Can I keep her car maintained running as a backup vehicle or for taking her on errands/doctor appointments, can I get a storage unit paid for a year in full to move her furniture out of her house as I cannot store it in my own, I know she can’t buy her 4yr old granddaughter a gift since she is not blind or disabled but that’s fine we can manage that, can she still get her hair done weekly, can I buy her hair color and toiletries at Walmart all using her debit card and keeping receipts, I’m trying my best to follow the rules for this 5yr look back and I can only control since I became a part of the picture this March and not before as I had not used my POA until then. If she co-signed on a student loan with me that has like 2k left to be paid off is that allowed? I am also trying to pay her credit card debt down as she got scammed a lot due to her failing memory with donations and political campaigns. Can she buy some new clothes at Belk for herself if I take her as long as it’s money coming out of her account only? I’m just trying to let mom spend some money on things she needs only and the rest I have to just liquidate away for her care month to month (which honestly won’t take long with the cost of these facilities). Her house and everything she owns is all in her name and not me or my sister so our inheritance will only be the value of her personal items within the house she no longer needs, and we are both fine with whatever lets us put our head down on a pillow at night to know she is cared for. Any advice would be appreciated or if anyone knows of a way I can get a mock audit done to help see if during this spend down she will have any questionable finances prior to me stepping in that might impede her application causing her to suddenly become my dependent issue for a period of time. Thank you for your time and I appreciate any advice or help, I hate being in this position and spending her money on things she doesn’t necessarily want :/
You can ask the attorney if payment is allowed for your time. this is the time to ask the question on the college loan and getting it paid off prior to a Medicaid application.
As far as selling the house, you can account for a dumpster, moving company.
I would encourage you to make life easier to hire a liquidator. They can sell items on consignment, toss things for you and save any valuable paperwork for you to review. Older houses take w while to sell. It is best to concentrate on the clean out and minor fixes to get it on the market. An older real estate agent with many years of seeing it all might be helpful here.
You mention 200k retirement. Is about 1,5 years of a SNF. You are in pretty good shape since this is not an emergency. Or maybe a year to get her in a good place while you spend down on her. If you and your family do not expect a major inheritance, going the full professional route rather then spending personal time, blood , sweat and tears, will mean less wear and tear on mind and body.
- one primary residence (within certain equity limits and conditions),
- one vehicle,
- personal belongings and household goods,
- certain burial arrangements,
while still qualifying financially.
For 2026, Alabama’s basic countable asset limit for a single nursing-home Medicaid applicant is generally about $2,000 in countable assets. But many assets are exempt/non-countable. Typically exempt assets include:
- Primary home (usually exempt if the applicant intends to return home, or certain family members live there.) Alabama currently allows relatively high home-equity limits for Medicaid purposes.
- One automobile (generally exempt regardless of value if used for the household/applicant. )
- Household furnishings and personal possessions - furniture, clothing, appliances, etc.
- Certain prepaid burial/funeral plans (usually irrevocable burial contracts are exempt. )
- Small amounts of life insurance depending on face value/cash value rules.
_Assets belonging to a community spouse if one spouse remains at home, special protections apply. The at-home spouse can often keep substantially more assets and income.
What usually DOES count:
checking/savings,
investments,
CDs,
stocks/bonds,
extra vehicles,
additional real estate,
many annuities,
cash-value life insurance above exemptions.
A few very important cautions:
1. Estate recovery
Even though the house may be exempt during life, Alabama Medicaid can later seek estate recovery after death in some circumstances.
2. The 5-year lookback
Alabama Medicaid reviews asset transfers made during the prior 5 years. Giving away assets can create penalty periods.
3. “Exempt” does not always mean “protected forever”
How property is titled, whether it passes through probate, trusts, TOD deeds, and spouse/disabled-child exceptions all matter greatly.
4. Married vs single rules differ enormously
If there is a spouse still living at home (“community spouse”), Alabama allows the non-applicant spouse to retain much more property/resources.
Because small details can drastically affect eligibility and estate recovery, families often benefit from consulting an Alabama elder-law attorney before:
selling property,
transferring assets,
adding children to deeds,
or spending down funds."
(Information aggregated by ChatGPT5.3)
>>> Please consult with a professional who is licensed in Alabama since online information can be inaccurate. <<<
Consult with an Elder lawyer, Moms money pays the cost.
I suggest that if you have not talked to an Elder Care Attorney that might be a good place to start. Cost of an attorney would come from her funds.
If the house needs repairs to get it ready for sale, or a clean out that would come out of her funds.
Pre paying for her funeral would come from her funds.