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My boyfriend’s mom is blind and in a nursing home with signs of dementia. Medicaid pays for it. We just discovered stocks we didn’t know she had. She never told us about it until now. Her brain is stuck in the 90’s, but she does remember things sometimes. Not often though. The nursing home did the Medicaid application. We reported the find to Medicaid. We are spending down the asset on a loan that’s in her name. We have documentation and receipts of this. Is there going to be a penalty? We honestly didn’t know about this and we are freaking out.

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I am in Indiana and my wife is on Medicaid. I would seek advice from a Medicaid attorney. Other alternatives are the nursing home or her case manager with Indiana FSSA.
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Reply to Robert525
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I would consult with a lawyer in Indiana regarding the state laws and regulations and requirements for competency and compliance and safety guidelines regarding your situation.
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Reply to Senior8
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Some elder care attorneys have a 1/2 hr free consultation. May be helpful to check with one. What part of Indiana is she in. I know an attorney that we used who does that southeast of Indy.
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Reply to Ltracy
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Did you already cash in the stocks. In 2025 or 2026? You should receive an IRS form 1099-B. This I would believe to be an asset that will be counted towards her threshold. Were the loan payments disclosed in the Mediciad LTC application?

You really need to speak with an eldercare attorney. It will be worth the expense and is allowable expense that will paid for with her funds to ensure you are not going to get a claw back from Mediciad.
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Reply to AMZebbC
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I wish you had come here before you told Medicaid about the find. I found 5k that had really been attached to an insurance policy my deceased father had. It was going to be so hard to cash it in, she had Dementia, that I just left it alone. 5k would not have paid for 1 month of her nursing home and there was no way I could spend down 5k. She passed after being on Medicaid 3 months. Her house finally sold and Medicaid was paid back then.

Sorry, this I don't understand "We reported the find to Medicaid. We are spending down the asset on a loan that’s in her name." I don't understand taking out a loan and how you got it with her on Medicaid. Why did you not just cash in the stocks and use them to pay for her care, then go back on Medicaid? When you told Medicaid, why did they not tell you how to handle it? You may need to consult with an Elder Lawyer.
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Reply to JoAnn29
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KMFord92 Feb 11, 2026
She has multiple debts in her name and her name is on a loan for her house. She had this debt before she went into the nursing home and she still has it
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Medicaid is managed by each individual state and therefore may have different rules. What state is your BF's Mom in?
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Reply to Geaton777
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KMFord92 Feb 11, 2026
Indiana
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