How to protect all assets from Medicare

[joelcoqui]

What is the name of your state (only U.S. law)? New York

My 78 yo mom has a living estate done 8 years ago in which her home was taken out of her name and in her two childrens name. She has plenty of bank money and tax free funds she needs to liquidate. She wants to gift to all her grandchildren. What is the best way to do this without getting taxed or flagged? Is that house considered part of her assets? We need all her assets to be protected from Medicaid. We see possible early signs of dementia so we need to work on this in advance.
Thank you.

 

[Zigner]

What is the name of your state (only U.S. law)? New York

My 78 yo mom has a living estate done 8 years ago in which her home was taken out of her name and in her two childrens name. She has plenty of bank money and tax free funds she needs to liquidate. She wants to gift to all her grandchildren. What is the best way to do this without getting taxed or flagged? Is that house considered part of her assets? We need all her assets to be protected from Medicaid. We see possible early signs of dementia so we need to work on this in advance.
Thank you.

Why should *her* assets not be used for her care?

 

[Antigone*]

What is the name of your state (only U.S. law)? New York

My 78 yo mom has a living estate done 8 years ago in which her home was taken out of her name and in her two childrens name. She has plenty of bank money and tax free funds she needs to liquidate. She wants to gift to all her grandchildren. What is the best way to do this without getting taxed or flagged? Is that house considered part of her assets? We need all her assets to be protected from Medicaid. We see possible early signs of dementia so we need to work on this in advance.
Thank you.

Her assets SHOULD be used for her care. The taxpayers should not be stuck paying for her care if she can truly afford it.

 

[tranquility]

MOM should see an attorney immediately if she wants to get anything done. There is a lookback period, that (to be fair), will be a big problem. As well, is the potential argument of lack of capacity.

See an eldercare attorney. The planning is complex and the rules are important. Mom needs to go. Not mom and you--other than to drive and wait in the waiting room when mom goes in and talks with HER attorney.

 

[CSO286]

What is the name of your state (only U.S. law)? New York

My 78 yo mom has a living estate done 8 years ago in which her home was taken out of her name and in her two childrens name. She has plenty of bank money and tax free funds she needs to liquidate. She wants to gift to all her grandchildren. What is the best way to do this without getting taxed or flagged? Is that house considered part of her assets? We need all her assets to be protected from Medicaid. We see possible early signs of dementia so we need to work on this in advance.
Thank you.

The lookback period is five years. If mom goes into a nursing home or other LTC faciliity, her money should be used to pay for sid care.

If she gifts her money to the grandkids, it can result in her being ineligible for a period of time.

Links for more info (NOT endorsements!):

http://www.todaysseniors.com/wp/medicaid/how-long-is-medicaids-look-back-period/]How Long Is Medicaid's Look Back Period?


http://elder-law.lawyers.com/Transferring-of-Assets-for-Medicaid-Look-Back-Periods.html]Transferring of Assets for Medicaid Look-Back Periods - Lawyers.com

http://www.caring.com/questions/medicaid-look-back]Medicaid Look Back | Medicaid Look Back Period | Caring.com


Sooo......she could certainly transfer these assets, as long as you and your family are prepared to shoulder the entire burden for her care for the five full years after such a transfer.

 

[joelcoqui]

I am aware of the look back period. She isnt ready for care now. If she stays healthy, it could be in 5 - 10 years. Its called planning. If her home is in her childrens name as a life estate, its that protected already? or it is still considered an asset?

 

[Silverplum]

I am aware of the look back period. She isnt ready for care now. If she stays healthy, it could be in 5 - 10 years. Its called planning. If her home is in her childrens name as a life estate, its that protected already? or it is still considered an asset?

Feeling a bit snarky with the volunteers who are donating their time to help you?

 

[tranquility]

The term 'life estate" can encompass many things. The main thing it means is something that is not described in the way you are. What happened to transfer the house?

 

[joelcoqui]

I dont know what snarky means..another term used by attorneys so I really dont get things even more?? I feel pretty stupid in this area and after hiring an elder law attorney who keeps taking our money because the law changes every year is ridiculous.
As far as I understand, my mom retains a life estate and transfered the property to the children. This is to protect the value of the home from future possible long term care costs. Am I correct in saying this? Is it wrong to protect her life savings as well? I just dont understand. Sorry.

 

[ecmst12]

If she has plenty of money, she should look into long term care insurance. At her age it won't be super cheap but it will be less expensive than NOT having it. Unless of course she's already been diagnosed with something that would exclude her.