Will the Gifts I Give My Parents Count as Income When They Apply for Medicaid?
I own the home my parents live in and I gift to them a combined $26,000 each year. These funds are used to pay their healt...
Read moreThe rules differ so much from state to state that it can be difficult to advise you. In general, assuming your parents are 65 or older, if both are seeking Medicaid coverage, they must spend down their savings to $3,000 (this number may be different in some states). If only one is seeking coverage, the other may be able to keep all of the savings.
Your parents can spend down by paying for whatever they need, including paying you fair market rent. They can also prepay for their funerals – admittedly a bit morbid. However, in most cases they cannot give their money away. Doing so could cause them to be ineligible for Medicaid for up to five years. But even this isn’t certain. While such a transfer penalty always applies to Medicaid in a nursing home, some states don’t apply it to Medicaid coverage while living in the community.
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Finally, some states permit seniors to transfer funds to special pooled trusts, so that the money can be available for their benefit but not interfere with the asset limit for Medicaid eligibility.
As you can see, they don’t make it simple. To be sure, you and your parents will have to consult with a Medicaid expert in your state. To find one near you, go here: https://www.elderlawanswers.com/elder-law-attorneys
I own the home my parents live in and I gift to them a combined $26,000 each year. These funds are used to pay their healt...
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Both my elderly parents need extra help. We are going to sell their house and move them onto my property. We will need to...
Read moreIn addition to nursing home care, Medicaid may cover home care and some care in an assisted living facility. Coverage in your state may depend on waivers of federal rules.
READ MORETo be eligible for Medicaid long-term care, recipients must have limited incomes and no more than $2,000 (in most states). Special rules apply for the home and other assets.
READ MORESpouses of Medicaid nursing home residents have special protections to keep them from becoming impoverished.
READ MOREIn addition to nursing home care, Medicaid may cover home care and some care in an assisted living facility. Coverage in your state may depend on waivers of federal rules.
READ MORETo be eligible for Medicaid long-term care, recipients must have limited incomes and no more than $2,000 (in most states). Special rules apply for the home and other assets.
READ MORESpouses of Medicaid nursing home residents have special protections to keep them from becoming impoverished.
READ MORECareful planning for potentially devastating long-term care costs can help protect your estate, whether for your spouse or for your children.
READ MOREIf steps aren't taken to protect the Medicaid recipient's house from the state’s attempts to recover benefits paid, the house may need to be sold.
READ MOREThere are ways to handle excess income or assets and still qualify for Medicaid long-term care, and programs that deliver care at home rather than in a nursing home.
READ MORECareful planning for potentially devastating long-term care costs can help protect your estate, whether for your spouse or for your children.
READ MOREIf steps aren't taken to protect the Medicaid recipient's house from the state’s attempts to recover benefits paid, the house may need to be sold.
READ MOREThere are ways to handle excess income or assets and still qualify for Medicaid long-term care, and programs that deliver care at home rather than in a nursing home.
READ MOREMost states have laws on the books making adult children responsible if their parents can't afford to take care of themselves.
READ MOREApplying for Medicaid is a highly technical and complex process, and bad advice can actually make it more difficult to qualify for benefits.
READ MOREMedicare's coverage of nursing home care is quite limited. For those who can afford it and who can qualify for coverage, long-term care insurance is the best alternative to Medicaid.
READ MOREMost states have laws on the books making adult children responsible if their parents can't afford to take care of themselves.
READ MOREApplying for Medicaid is a highly technical and complex process, and bad advice can actually make it more difficult to qualify for benefits.
READ MOREMedicare's coverage of nursing home care is quite limited. For those who can afford it and who can qualify for coverage, long-term care insurance is the best alternative to Medicaid.
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READ MOREDistinguish the key concepts in estate planning, including the will, the trust, probate, the power of attorney, and how to avoid estate taxes.
READ MORELearn about grandparents’ visitation rights and how to avoid tax and public benefit issues when making gifts to grandchildren.
READ MOREUnderstand when and how a court appoints a guardian or conservator for an adult who becomes incapacitated, and how to avoid guardianship.
READ MOREWe need to plan for the possibility that we will become unable to make our own medical decisions. This may take the form of a health care proxy, a medical directive, a living will, or a combination of these.
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READ MOREWe explain the five phases of retirement planning, the difference between a 401(k) and an IRA, types of investments, asset diversification, the required minimum distribution rules, and more.
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