If a person gifts the allowable $13,000 to a daughter, like 3 years in a row, then all the sudden goes into a nursing home for dementia, and uses up all their assets within a year or two, then goes on Medicaid, do they come after that $39,000 via the recovery act?
Asked on 3/29/14, 10:51 am
1 Answer from Attorneys
Elizabeth Schmitz
Elizabeth S. Schmitz Attorney at Law
If a person made gifts during the five years prior to a medicaid application then they would have a penalty upon application. The penalty is equal to the amount of the gifts divided by approximately $6,000.00. In your example there would be an approximately six month penalty during which Medicaid would not pay for nursing home care.
The $13,000 allowable gifts is a figure used for gift tax purposes. There is no amount of gifts that are allowable under the Medicaid rules.
Answered on 3/29/14, 12:47 pm
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