WAG 20-08-11-c.

Client's Personal Funds

If personal funds are managed by the LTC facility, the facility must:

  • Establish an account for residents' personal funds that is separate from the facility's funds.
  • Withdraw funds only to:
    • return the funds to the client upon a written request;
    • give the client their personal allowance; or
    • make any payment approved by the client or their representative.
  • Establish a separate written record of each client's funds. The record must be easily obtained by the client.
  • Provide a written statement of the account to the client or their representative at least quarterly.
  • Place any funds over $50 ($100 for ICF/MR clients) into an insured, interest bearing account; and credit the client's account with the interest.
  • Notify the client when the account reaches $200 less than the one person asset limit, and inform the client that HFS will consider excess amounts of assets as available to pay for long term care.
  • Retain records of clients' funds for 3 years for all current and former residents.
  • Promptly report any change in circumstances to the Family Community Resource Center.
  • When the client dies, notify the FCRC of all the client's personal property, including funds held by the facility, and convey the client's funds promptly to the person administering the client's estate. The facility must also provide a final accounting of the funds to the person administering the client's estate. Although it is not required, it is recommended that the facility require a small estate affidavit before releasing the decedent's funds to anyone.
  • When the client is discharged, provide a report on the client's account and promptly refund the client's personal funds to the client or guardian.

The facility or guardian cannot use the client's personal funds for anyone but the client. The facility must explain to the client or guardian that the client's funds should not be used to purchase something that the facility must provide as part of the client's care.

Room and Board Accounts

A room and board account is a record of:

  • cost of care provided to the client;
  • all funds received that can be applied toward the cost of care; and
  • the current balance of the client's account.

When a facility has a room and board account, it must keep a record of all receipts and expenditures in the room and board account. All transactions must be identified and a written record must be kept of each client's account. Review the room and board account at REDE.

If the funds in the account have been saved and with other nonexempt assets exceed the asset limits, treat the excess as available for the long term care credit/spenddown calculation.