Recent Feedback
My mother has too much money in her savings and checking accounts to qualify for medicaid. She has gifted $10,000 to one of my daughters for college. Can she gift to another child in order to spend down enough to qualify?
Optional Information: State/Country relating to question: New Hampshire
Thanks for the chance to help. I am an attorney with over 12 years experience. Hopefully I can help you with your legal question.She can...but the law has a "look back" provision...they will look at her gifts and can "dock her" benefits until they recoup the amount of the gifts.So she can give away the money...but the folks who administer medicaid will be able to see if she is giving away money and can penalize her for this.
Thank you for the prompt reply. Will they dock her for the money she has already gifted to my daughter?
They can...there is a 5 year look back provision...they can go back 5 years on gifts.
OK. Just one more question. I quit my job 2 years ago to take care of my mom, because she has dementia. Am I legally allowed to pay myself, using her income, to compensate for my lost income, or will medicaid penalize her for that, too?
That is a bit of a gray area. Medicaid will penalize her for gifts that are given out with the intent to reduce income (they law does not allow a person to give away assets to others just so they can get money from the government)On the other hand, day to day living expenses are not treated in the same way.So the costs mom incurred for her day to day expenses? They are not subject to the look back provisions.So, to the extent the money you took was part of moms required day to day living expenses, it would not be subject to a look back penalty.
Experience: Estate Law Expert