My mother has just been enrolled in Medicaid. I was told her "mineral rights value" would be considered an asset & the value would be deducted from the $2,000 amount that she can retain in her checking acount.
When she was assigned to Medicaid, I was told how much to pay the Nursing Home, w/ her $60 monthly stipend being deducted. I asked again re the mineral rights value & was told she can have $2,000 in her bank account. I asked twice & was told twice this answer.
My worry is, at the end of the year, when she will be reassessed, have I done anything wrong.
I am assuming if she has $1,400 in her account & she receives a royalty check for say, $300, she is ok, bc her account is still under $2,000. I am still worried however, I thought I would need to pay the Nursing Home the entire amount of the royalty check.
Confused.
Shirley, I am not an expert in this field, but it is my understanding if your mother stays under the $2000 asset limit medicaid pays the nursing home and your mom pays a small monthly co-pay.
Ms. Turner, I don't want to pry but to make any kind of decent suggestion I think I need to know how many acres and what area we are talking about. If it's a house lot of an acre or less you may have no problem if it is leased at 20% royalty, unless it takes them a year to send the first royalty check with all the back payments on it. Not knowing what you have, the only thing I can think of is that you might purchase your mothers royalty stream for a period of 1 to 2 years. This would not be am arms length transaction, and probably would undergo medicade scrutiny, so I would say it would have to be at market value and not $1 and other valuable considerations, but still might be a reasonable sum if based upon the amount she received in bonus for the lease, and in a year or two you will know more about the financial situation. Not knowing any more, it's the best I can think of offhand. If the property is small and it doesn't have a monster well, and if they don't hold first payment too long, it might all be a moot point, as it may not pay enough to matter as far as keeping assets low, yet provide a small, welcome income. I have an acquaintance that just received an offer to buy his royalty stream on a house lot for $690 for as long as oil or gas is produced. If your mother has received such an offer you might use it as a basis for a reasonable shorter term purchase of her royalty stream that medicaid wouldn't object to. Wishing your family the best.
Shirley Turner said: Thanks for the reply. My mother has received royalty earnings for quite a few years. She has just now entered a nursing home & went through the "spend down"/ & again, I thought she could only have the $2,000 limit in her bank account. The nursing home (minus her $60 allowed) is paid the rest.
My account was probably confusing. I was just wondering if anyone out there had a parent in a nursing home that had mineral royalties coming. She doesn't receive a check every month, just sporadic. My sistere & I thought we might buy her share. I will go back to the Medicaid office one more time to make sure I am doing everything correctly. With her phone, personal expenses, as long as the royalty check is used for her & the amount in her bank account starys at or below the $2,000, hopefully it will be ok.
Thanks again.
r w kennedy said:
Ms. Turner, I don't want to pry but to make any kind of decent suggestion I think I need to know how many acres and what area we are talking about. If it's a house lot of an acre or less you may have no problem if it is leased at 20% royalty, unless it takes them a year to send the first royalty check with all the back payments on it. Not knowing what you have, the only thing I can think of is that you might purchase your mothers royalty stream for a period of 1 to 2 years. This would not be am arms length transaction, and probably would undergo medicade scrutiny, so I would say it would have to be at market value and not $1 and other valuable considerations, but still might be a reasonable sum if based upon the amount she received in bonus for the lease, and in a year or two you will know more about the financial situation. Not knowing any more, it's the best I can think of offhand. If the property is small and it doesn't have a monster well, and if they don't hold first payment too long, it might all be a moot point, as it may not pay enough to matter as far as keeping assets low, yet provide a small, welcome income. I have an acquaintance that just received an offer to buy his royalty stream on a house lot for $690 for as long as oil or gas is produced. If your mother has received such an offer you might use it as a basis for a reasonable shorter term purchase of her royalty stream that medicaid wouldn't object to. Wishing your family the best.