Question: My stepfather is 87 and was married to my mother for 52 years after both of their first spouses died. He never had any children and, as far as I knew, had no close relatives. I am my mother’s only child and have basically taken care of both of them for years. Each signed over to me their powers of attorney so I could take care of their finances, and both named me in their wills.

My mother had a stroke five years ago and spent the last four-and-a-half years in a nursing home. After their resources had gotten pretty low three years ago, I helped “Dad” get her qualified for Medicaid by assisting with the application that was approved.

All I knew he owned was the house where he lived and $15,000; he never told me about his half-interest in 440 acres of farmland he had inherited from his mother in an adjoining state. When it came time to renew Mom’s Medicaid in February, I got a copy of her separate bank account to send to Medicaid, and it contained less than $1,200. I got his account and was shocked to see that more than $250,000 had been deposited in January. Come to find out that his brother’s children (who owned a half-interest after their father died) had sold the land and deposited his share into his account. He finally remembered that he had signed a deed that his niece had sent to him.

Medicaid now wants repayment of more than $130,000 and is getting ready to kick Mom off Medicaid. When I told Dad, he said that since this land was inherited from his family, it was his -- not my mother’s -- and he should not be forced to pay any more of her bills. He thinks I am making this up to get his money. I have tried to get answers from some lawyers here in town, but none of them are much up on these things. What is the best way to handle this so Mom is cared for and Dad doesn’t hate me?

Answer: While you should hire an experienced elder law attorney to give you an opinion based on all of the facts before you act, due to the fact that the inheritance was and had been in your stepfather’s name at the time he signed your mother’s Medicaid application, the value of that property should have been reported on the application. Since it was not reported, Medicaid benefits were wrongfully paid on behalf of your mother for three years, and your stepfather is liable for repayment to your state Medicaid program.

The fact that the unreported property was inherited from his mother and was not in your mother’s name is irrelevant when it comes to Medicaid. All assets owned at the time of the application should have been disclosed, but they weren’t. And because of that, it is his obligation to repay Medicaid.

That’s not all, however. Because your stepfather will have more than $120,000 of the sales proceeds remaining after the repayment, he will be required to continue to pay for your mother’s ongoing monthly nursing home care privately until she will again qualify for Medicaid – that is, when her countable resources are less than $2,000 and his assets are less than your state’s Community Spousal Asset Allowance.

Taking the NextStep: Had your stepfather’s inheritance been vested in his name after your mother had qualified for Medicaid – or had he won the lottery after her qualification -- his windfall would have neither affected her continuation on Medicaid in the future nor resulted in a retroactive disqualification. Since your mother’s and stepfather’s ages would have prohibited them from purchasing long-term care insurance, a modicum of planning could possibly have saved some of their resources.