Legal Question in Elder Law in Oregon

gift and medicaid penalty

My mother is going into assisted living and is currently qualified for medicaid. Medicaid has told me when she sells her home she will no longer be qualified for medicaid until her assets are down to $3500. I believe she will have between $50,000 - $60,000 after she sells her home and pays her bills. The question is how much will she be penalized by medicaid if she wants to give $1,500 to each of her 3 children?


Asked on 9/12/02, 10:49 am

1 Answer from Attorneys
Susan Burns Law Office of Susan Ford Burns

Re: gift and medicaid penalty

Generally gifts will create a period of Medicaid ineligibility. The size of the gift determines how long the person is ineligible.

There are a number of things that should be considered when doing planning for a "spend down", which is what your mother will need to do after selling her home.

I recommend that this planning occur before the house is sold, so that the plan can be implemented as soon as she receives the funds. This way she will be ineligible for the shortest period of time. The spending can be used to benefit her and make the remainder of her life in the nursing home more pleasant.

Our office regularly advises clients on dealing with medicaid eligiblity issues and would be happy to work with you and your mother in this area.

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Answered on 9/12/02, 4:12 pm


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