Legal Question in Wills and Trusts in Wisconsin

I talked with one of my partners, John, who gave me the following answer: Under Wisconsin law, a penalty period can be imposed with respect to gifts made within 5 years prior to your mother applying for Medicaid benefits to cover nursing home expenses. The penalty period commences at the date of application, not the date of the gift. Therefore, only after 5 years have elapsed would the gift be considered protected. I recommend that children hold the gifted funds for the parent's lifetime to cover comfort items and expenses not covered by Medicaid. At a minimum I would at least hold the funds until the parent was approved for Medicaid. Keep in mind there are other eligibility requirements which must to be met to qualify for Medicaid aside from the gifting issues.

Usually we can work with people to determine how to preserve assets in a situation such as yours. There are calculations that can be run and complex regulations to comply with, but there are many methods to protect assets, if properly done.

Good luck with your situation!