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Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 11356
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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My mother may be going to a nursing home. She has enough

Customer Question

Greetings. My mother may be going to a nursing home. She has enough money left for 5 months of private pay then would apply for Medicaid. I have been gifting myself up to 1000.ooper month for years cover my expenses related to her care. Will I be assessed a penalty according to the 5 year lookback program.
JA: The accountant will know how to help. Is there anything else the accountant should be aware of?
Customer: I don't know.
Submitted: 5 months ago.
Category: Finance
Expert:  Lane replied 5 months ago.

Hi. My name's Lane. I can help here.

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Unless documented carefully, you could (better said, she could, they will typically push back the time that medicaid will begin paying by the amount of time that the transferred money would have covered).

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What's you'll want to do is document that those dollars WERE spent on her care.

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If you are saying that you were being paid BY your mother for care, then you'd want to have showing that as taxable income (or at least the income over and above ordinary an necessary expenses for caregivers).

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But yes, so sorry, because medicaid is means-tested, those gifts (again unless you can show, if it comes to it, that you spent the dollars on those allowable spend-down items) will be considered as transfers that affect eligibility

Expert:  Lane replied 5 months ago.

Please let me know if you have ANY questions at ALL, before rating me.

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If this has helped, and you DON’T have other questions … I'd appreciate a positive rating using the Stars on our screen (and clicking submit).

Otherwise I'm not compensated for the time here.

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Thanks!

Lane

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I have a law degree, with electives in Tax Law, Estate law, Corporate law, and business planning … an MBA, with specialization in finance a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.