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Unfortunately while you can withdrawal the funds, you cannot transfer those funds to children or other people without causing a Medicaid penalty. You cannot even transfer $10,000 without causing a Medicaid penalty.
The $10,000 that you are talking about are allowable gifts for federal gift tax purposes. You can transfer now up to $13,000 without reporting the gift under federal gift tax. The federal gift tax exemption
is now $5 million so no gifts under $5 million will be taxed with federal gift tax. However, gift tax is not the issue. Even though the gifts are not taxed under federal gift tax the do cause a Medicaid penalty as discussed above.
Just moving assets from your husband's name to your name will not allow him to qualify for Medicaid. Since you are married Medicaid will factor in based on assets that are in both of your names. You need to immediately discuss options for modifying your assets so that he can qualify for Medicaid with an Elder and Disability Law attorney. You can find an attorney at www.naela.org
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