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Question

If I give my children $12,000.00 per year as a spenddown and have to go to a long term care home and can't pay for it. Will S.S. do a lookback on that money ? Or how can I give my children the little money I have left.   Thank You, Fred

Submitted: 290 days and 10 hours ago.
Category: Legal
Value: $30
Status: CLOSED
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Optional Information

fresno, California

Already Tried:
Gifting to my children each year.

Posted by Christy 290 days and 9 hours ago.

Answer

XXXXXX,

Any transfers can be considered for three years prior to applying for the benefit. After three years, the transfer is no longer considered.

If a transfer of assets for less than fair market value is found, the State must withhold payment for nursing facility care (and certain other long-term care services) for a period of time referred to as the penalty period.

The length of the penalty period is determined by dividing the value of the transferred asset by the average monthly private-pay rate for nursing facility care in the State. Example: A transferred asset worth $90,000, divided by a $3,000 average monthly private-pay rate, results in a 30-month penalty period. There is no limit to the length of the penalty period.

For certain types of transfers, these penalties are not applied. The principal exceptions are:

Transfers to a spouse, or to a third party for the sole benefit of the spouse;
Transfers by a spouse to a third party for the sole benefit of the spouse;
Transfers to certain disabled individuals, or to trusts established for those individuals;
Transfers for a purpose other than to qualify for Medicaid;
Transfers where imposing a penalty would cause undue hardship

Thus, if you are planning on giving away money, you need to do it three years before you apply for long term care.

If I have answered your question, please click Accept. I am happy to answer follow up question if you need clarification.

Thanks,
Christy

290 days and 9 hours ago.

Reply

I was told Bush signed a law that made it a five year lookback? Thanks

Accepted Answer

It is 5 years (60 months) for certain trusts, but not for cash gifts. You can read the entire government publication here, if you want it as reference:

http://www.cms.hhs.gov/MedicaidEligibility/10_TransferofAssets.asp#TopOfPage

Christy

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Expert: Christy
Pos. Feedback: 99.0 %
Accepts: 
Answered: 2/3/2009

Attorney

Former General Counsel for nationwide corporation. Contracts, rental properties, business law.

290 days and 9 hours ago.

Reply

Thank You

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