“I can give away $12,000 per year and I will still qualify for benefits”
We frequently hear from individuals who have gifted $12,000 each to their children and grandchildren, over the past few years. However, this gifting is a myth. In fact, the $12,000 figure is now $13,000. But this is an IRS rule regarding filing a gift tax return. This has nothing to do with Medicaid law. If you make a gift, within five (5) years of qualification of Medicaid, you will penalized. For example. If you gift to your family $68,000, within the five (5) year period, you will be penalized for TEN (10) months, before you receive Medicaid. Therefore, who will pay your nursing home bill?
Therefore, we suggest using an Elder Care Attorney to avoid these types of issues.Tags: gift, gift tax, gifting, IRS, medicaid, nursing home bill, penalty period