By Admin on Oct 25, 2011 in Financial Services
i need to have my stepfather qualify for IHSS so that i can take care of him at home. i know you cant have a large income but he got a reverse mortgage to pay bills he lives off his social security which does not go far
Not sure about other states but in California, make sure he does not have more than $2000 at the end of the month in all his bank accounts. Withdraw only what he needs or can use within the month. Money derived from a reverse mortgage is not considered income for tax purposes, but a lot of money sitting in your personal bank account is a no-no for IHSS or MediCal. Whatever funds you have remaining in the Line of Credit with the lender does not count as income or cash or as an asset; it does only when you withdraw it and put it into your account.
So for example, say you have to replace the roof at a cost of $10,000 and the job is expected to last over 3-5 days. In case you have to make payments in portions, make sure you withdraw the $10,000, make the vendor complete the job, and pay the vendor all within the same month. Don’t let the money sit over into the next month. Make sure that whatever happens, at the end of the month he has spent down the funds and does not have more than $2000 in all his accounts. This is perfectly legal.
MRA | Oct 25, 2011 | Reply