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Dad has dimentia and is in assisted living - we are still awaiting Illinois Medicaid coverage decision. They own one car but it needs to be replaced. Can I ,or another sibling, pay the car dealer directly for a portion of the car and mom pay the balance? Is there any impact on the current Medicaid application? I know there could be an impact if she were to apply for medicaid for herself in five years.

A car is a requirement.
You can buy a car and own ONE CAR that is exempt from Medicaid.
If the application is made and there is now a change in finances, it's a shame that this car business wasn't taken care of before the application stuff got started, because now you must call and find out what change this makes.
As to whether you and brother can buy a car for them, or partially pay for their car, yes, you can. If you have gifted, yourselves, more than 15,000 toward one person it must be declared and has tax implications for YOU but none for them. I would do a trade in with the junker so that at any time they don't hold title on two cars.
And do remember, your questions need to go to an attorney or to Medicaid in your state. We are just a bunch of caregivers with some good guesses from experience. About legal matters you cannot afford to be wrong so go directly to the horse's mouth.
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Reply to AlvaDeer
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Medicaid rules vary by state and you've told us what state you're Mom lives in.
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Reply to Geaton777
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The problem I see is, whose name is it in? If Dads then its his exempt asset. Was it listed on the Medicaid application?
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Reply to JoAnn29
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Cubs20162024 Oct 23, 2024
We are in Illinois. They had two cars but we recently sold Mom's because it needed repairs worth more than the car and it was 16 yrs old. Dad cannot drive anymore so she drives that now. We are not selling his car for a couple reasons, and instead getting Mom a reasonable used car in just her name, for like $10k-$12k. If she purchased it outright it would dramatically reduce her savings. They receive SS, she has a small 401k and some savings, but no pension and paying on a mortgage. The long term care medicaid application is under review - we submitted everything and followed up based on questions. The difficulty we have is finding an elder law attorney that will answer just one question. They either want to review our entire matter (there is nothing more to review) or charge us a retainer fee (seriously). Is it possible to ask the Medicaid office these types of general questions?
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I read your reply below .
Why can’t Mom continue to drive Dad’s car ? Yet you say you aren’t selling Dad’s car for a couple of reasons . Is someone else going to buy Dad’s car from her ? Or is someone hoping to inherit it ?

Every state is different but what I have heard is typically your mother would be allowed to stay in her house and have only one car .
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Reply to waytomisery
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Cubs20162024 Oct 23, 2024
Our brother died in the car and my mom found him in it so it is PTSD every time she drives it. It is 10 yrs old and we are only keeping it for now because it is one less argument to have with dad, even though he doesn't drive, until we hit the point where the car is no longer a topic of conversation. It is in his name and he is allowed to have a car so we just let it go for now. We understand the rules of getting through medicaid and spousal impoverishment, we just were not sure how to handle helping pay for a new car while we are awaiting word to know if his long term care will be paid for and it is very difficult to find answers to these type of questions. Thanks to all the replies
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