Medicaid eligibility after gifting

[planotexan]

What is the name of your state? TX

I have been gathering information regarding medicaid eligibility. It is easy to find information on what your income and assets need to be for medicaid eligibility. What I can't find is formulas to determine what would need to be paid back after a gift to become medicaid eligible during a look back period.

Here is my situation. My inlaws would like to gift me the bulk of thier estate. Aproximately $250 including their home. Currently they have no plans for medicaid. If something were to happen a year or two down the road, how would medicaid calculate the money that would need to be paid before they would begin payments of claims?

Does it make a difference if a portion of the gift comes from a trust?

Assuming most of the gift is cash, and the rest comes from a home that is worth the same as their basis, what income taxes might I have to pay?

I do plan on cosulting an elder atourny about all of this, but I want to make sure I have all of my questions ready.

Thanks
plano texan

 

[NWFLGUY]

Reply

Not sure about all states but in Florida, they would have these assets brought back into their estate if three years have not passed since gifting the items away. That would mean they would not be eligible for Medicaid Nursing Home benefits for a period of time equal to what they could have paid on their own with these assets. Lets assume that the charges are $50K per year and they had gifted you $250K within the three years. From my understanding, they would not be eligible for Medicaid Nursing Home benefits for 5 years. There are other problems with you "owning" their assets. What if you are sued and lose their assets? Lord forbid, you die before them or divorce...their assets would be part of your estate....how about your kids college, their assets could make you too wealthy for student loans. I would urge you to seek the advice of a good elder care attorney and follow their advice. Perhaps trust work may be in order.... Good Luck

 

[smcgarry]

Look back is 36 mos for Medicaide qualification, unless something sends up a red flag to them. In that case they could go back as far as 5 years. I just went through something similar with my Mom and have an elder law attny that told me this info.

 

[BlondiePB]

...unless something sends up a red flag to them.

Things that send up red flags include.....

things not to be disclosed because fraud and fiduciary abuse is easily caught by those red flags.

 

[Primardie]

Gift Tax

What is the name of your state? TX

I have been gathering information regarding medicaid eligibility. It is easy to find information on what your income and assets need to be for medicaid eligibility. What I can't find is formulas to determine what would need to be paid back after a gift to become medicaid eligible during a look back period.

Here is my situation. My inlaws would like to gift me the bulk of thier estate. Aproximately $250 including their home. Currently they have no plans for medicaid. If something were to happen a year or two down the road, how would medicaid calculate the money that would need to be paid before they would begin payments of claims?

Does it make a difference if a portion of the gift comes from a trust?

Assuming most of the gift is cash, and the rest comes from a home that is worth the same as their basis, what income taxes might I have to pay?

I do plan on cosulting an elder atourny about all of this, but I want to make sure I have all of my questions ready.

Thanks
plano texan

How will your inlaws handle the gifting of that property to you? I understand that the giver pays the taxes and not the receiver. That's a lot of money to pay on such a large amount that you are talking about. I believe 11,000 is the max for any one person.

Primardie

 

[BlondiePB]

How will your inlaws handle the gifting of that property to you? I understand that the giver pays the taxes and not the receiver. That's a lot of money to pay on such a large amount that you are talking about. I believe 11,000 is the max for any one person.

Primardie

This is an old post. Had poster required more info he/she would have been back.

 

[anteater]

This is an old post. Had poster required more info he/she would have been back.

... And someone has given Primardie some crummy information about gift taxes.

 

[BlondiePB]

... And someone has given Primardie some crummy information about gift taxes.

Maybe it was a squibbling.

 

[anteater]

Maybe it was a squibbling.

Trust me, I thought about working that in somehow. But it just did not fit and overuse takes the zest out of the usage.