Globally the rules of the Medicaid program are
designed to discourage individuals from transferring savings and
other countable resources to adult children, siblings, or others
in order to satisfy the Medicaid resource test and qualify for nursing
facility coverage. If an elderly individual who is living at home
(or the individual's spouse) disposes of resources for less than
fair market value within 36 months of applying for Medicaid, then
the individual is subject to a period of exclusion from coverage
for nursing facility services. The 36-month "look-back"
period is extended to 60 months in the case of transfers into or
from certain types of trusts.
You should check with a Medicaid Lawyer in your state before ever
gifting to anyone. Even the best of intentions can cause serious
consequences when a senior citizen gives away money and needs government
benefits.
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