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?
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.
Estate Law Expert
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).