Grandma on Medicare RE in trust?

Question

So my grandma has a condo in a living trust and can’t have more than 2000 in her checking account for Medicaid qualification. She has a maintenance agreement with a tenant that is getting extremely reduced rent to keep her income low and keep her from losing the property to the state. My question is what should I look at to make things cash flow better even if that cash flow is into upgrades. The first thought I had was having my dad charge property management fee to up the rent but pull out some cash flow. Secondly I thought using more extra rent to dump money into renovations of the condo so when passed on it has better equity. I don’t if know they are depreciating the property tax wise and I’m out of the loop on what they have going on with the attorney for keeping the condo while on Medicaid so could use some advice as to what to look into.

Justin Miles · Answer

@Steve Hall so its fraud to use “spend down” to make home improvements to a condo in a trust? While keeping under the 2000 a month threshold.  I’ve read further since my post and it seems to be a viable “legal! option” I posted not to commit fraud but to better understand my “legal options”. I don’t appreciate your implications. She has condo worth 75k and is in a nursing home barley getting by. hardly a wealthy real estate investor sir.

Steve Hall · Answer

@Justin Miles

Medicaid is for people with limited income, not wealthy real estate investors with living trusts. You are asking us how to help your grandma commit fraud. You are already an accomplice, and now you've posted your intentions on a public forum. Conspiracy to commit fraud can be charged as a federal offense.

While I believe in filial piety to a point, I would not go this far for your grandma or for my grandma.

I doubt anyone else on BP wants to become an accomplice either...