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Hi. My name is***** will try to help you with this.
Unfortunately Florida has what is called a 5 year look back period.
In other words Florida will look at any gifts/transfers your mother has made in the past 5 years to reduce her assets so she qualifies for Medicaid.
Having determined the total of such assets they then calculate the transfer penalty as follows:
The divide the total of her transferred assets by $9485, the cost of one month of care on Medicaid.
The result of that calculation is the number of months you will have to use her assets before Medicaid takes over.
I know this is not good news.
If you want to see if there is any way you can avoid/mitigate this you can contact a lawyer for a free/reduced rate 30 minute consultation.
This look back procedure is in all the States, The only variation is the number of years. New York, for esample, has a ten year look back period.
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OK, dealing with the transfer to you as someone receiving government benefits as a disabled person.
That transfer to you is exempt frooum the look back and will not affect your mother getting Medicaid as you know.
Since you may be on Medicaid in the future you will want to transfer that money to your children so it doesn't get caught in a 5 year look back in the future.
Your Disability Benefits will not be affected by receiving this money since there is no income elgibility criteria.
Once the money is transferred it is yours to use as you choose, as she would prefer or any other way.
If you have another question pleaase let me know.
if not please submit a 5 star rating so JA can pay me for the attention I have given your question.
Thank you for using JA.
The transfer means the money is no longer your mother's. That's how she qualifies for Medicaid.
You can transfer the funds pursuant to your POA.
They don't have to go into a special needs fund . Such funds are usually created to provide disbursements to support the disabled child or to avoid affecting benefits if you are on Medicaid. This is not your situation.
You can receive the funds and use the income for your grandchildren.
See an estate lawyer about putting the money in a trust for the grandchildren with you as a trustee. That way the money is owned by the trust, not you, but you can use it as you wish for your grandchildren.
Hope this helps.
You're right. It is late and we've been on this chat for an hour.
Tax issues are a new area of discussion.
You should discuss the tax consequences of each plan, whether a straight transfer or the Special Needs Fund, with the attorneys you see tomorrow.
I would appreciate a positive star rating at this point so JA knows I have been working with you. Thanks.
BTW there is a lifetime gift tax exclusion of $11million.
Thank you for the rating.
And good luck in dealing with these problems.