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[illinois] My Brother's Nursing Home Is Taking His Son's Ward Payments.

Location: Illinois. My brother's has 3 children adopted out of the foster system. The two eldest are over 18 and are living independently. In 2024 my SIL (the adoptive mother) died of cancer and at the same time my brother was hospitalized for extreme complications from untreated diabetes.

My nephew (15m) is currently living with me as an unofficial guardian. We have a Short-Term Guardianship Agreement signed that has let me do things like talk to doctors and enroll him in school etc.

My brother's income is $1501/month from disability. He also receives $511 as a "ward payment" from the State of IL for his son as part of the adoption. The nursing home is taking all of his income Less $60 of spending money as per the agreement. Supposedly they are saying that Medicaid is counting it as income and he has to forfeit anything that counts as income.

My understanding of the ward payment is that the money is paid exclusively for my nephew's care and cannot be legally used to pay the nursing home.

Ideally I would like the ward payment and the money that has been taken thus far, to be paid back to him and placed into an account for my nephew when he comes of age.

What is my best course of action?

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[illinois] My Brother's Nursing Home Is Taking His Son's Ward Payments.

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