Giving away money and things is actually a lot trickier than you may realize. There are so many times when somebody will come into my office, and they'll say something to me like, "Oh, but I know that you can give away 10,000 or 11,000 or 15,000 per person per year, and It'll be okay!". However, that statement is very problematic.
First, I want to explain what gifting is in the eyes of the law. "A gift is property, money, or assets that one person gives to another while receiving nothing or less than fair market value in return." That seems pretty simple, right? Where people get confused is when they give away certain things that may not seem like gifts.
For example, let's say you want to give your car to your grandchild. You sell it to them "for $1", but according to the vehicle's market...
As in part four of our series, your Medicaid planning advisor can best help you determine how the rules apply to your specific circumstances in your specific locality. Before you get into the specifics, however, it’s a good idea to familiarize yourself with the general federal guidelines for Medicaid qualification that apply everywhere.
Many people believe that if you give your assets away, you must wait 60 months to qualify for Medicaid. This is not the case. The 60 month requirement only applies to the financial disclosure you must provide, not eligibility.
Think of it this way: When you go to apply for Medicaid, imagine you’re bringing a box with you. In that box is every financial transaction you’ve made for the previous 60 months. That is all you need to provide – if you made a transaction 61 months ago, it’s not...
As in Part One of our series, your Medicaid planning advisor can best help you determine how the rules apply to your specific circumstances in your specific locality. Before you get into the specifics, however, it’s a good idea to familiarize yourself with the general federal guidelines for Medicaid qualification that apply everywhere.
What happens to a Medicaid recipient’s estate when he or she passes away? Like so much else, that depends on whether they have properly planned to protect it.
When a Medicaid recipient dies, the state may attempt to recover the benefits paid to that individual from his or her estate – that is a requirement under federal Medicaid law. However, the state cannot proceed with this recovery process if any of the following applies:
What Are the Rules for Medicaid Qualification (Part 1)?
Medicaid is a federal program that provides health coverage for people with limited assets and incomes. It covers the cost of nursing home care for those who meet the program’s economic requirements for eligibility, and in several states, it will also pay for care in your home!
Though it’s a federal program, Medicaid is administered by the states. Federal law empowers each state to enforce Medicaid eligibility rules according to its own interpretation. This means that application of these rules can vary significantly from state to state and, in some states, from county to county. Qualification for care in your home is also different for qualifying for care in a nursing home.
Your Medicaid planning advisor can best help you determine how the rules apply to your specific circumstances in your specific locality. Before you get into the specifics, however, it’s a good idea to familiarize yourself with the general...
Though there are many complexities to Medicaid planning, it’s important to understand Medicaid is there to help families like yours. Medicaid planning is the best way to ensure you receive the benefits to assure you protect as much of your hard-earned assets as the law allows, and to receive the care you need.
It is also important to understand that Medicaid planning may be a necessary component in ensuring that the spouse “left behind” is not left in poverty. The first step in Medicaid planning is education. The more you know about how Medicaid works, the better you will be able to look out for the interests of your family.
For more detailed information, it’s best to consult with a qualified legal advisor. So think of this as an introduction.
Medicaid planning can begin anytime, even if your loved one is already living in a skilled care facility....
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