You need to hire a qualified elder law/Medicaid attorney. You will have to prove that you've lived with and cared for your mother for over 2 years. A qualified Medicaid attorney should know exactly what documentation is required by the local Medicaid agency.

My mother has dementia and has been living with me for over 2 years. I provide care for her at nursing home care level. I am going to need to put her in a home because her needs are too great for me to continue to care for her. I would like to apply for Medicaid and she has one asset, which is the house that we all live in. If she signs over the house to me before applying for aid, is this considered a penalty? I was told by a lawyer that the house could be signed over to me as long as I have been caring for her for over 2 years. Is this accurate? and if so, when do I sign the house over? Before I apply medicaid or after?

2016, the exclusion is $16,000.

CatyRay: I agree with you in that if you can afford the care, you are cheating in moving assets or even getting on Medicaid. My mom and dad don't have much. They only had their house which we can't sell because my dad is still living in it. At 89, he has about $500 in the bank and depends on social security to pay his bills and buy food. My mom was a homemaker all her life and her only income was her portion of my dad's SS. She has advanced dementia and can't even get up out of bed or a chair on her own and my dad got to where he just couldn't lift her to go to the bathroom. I certainly can't afford $2000+ a week for home care. It breaks my heart and I hate it that we had to put her in a nursing home and get her on Medicaid to pay for it.

I realize many families have no other choice but to apply for Medicaid for their loved elder ones. But it seems like "cheating" to deliberately do everything to get rid of assets to be eligible for Medicaid. This seems like passing the bill to the rest of us taxpayers. Do you really want your loved one to be in a facility/wing in a Medicaid room or do you want the best facility you can afford, even if means selling the house? Home care for Mom is about $2000 a week, and she is still going strong at 95 years old. My brother and I have never regarded our parents' savings as "our inheritance" as something owed us. My dad's mother was a widow for over 40 years and penniless when Dad was able to place her in a good nursing home; she was on Medicaid and the state repeatedly sent Dad letters to recoup costs for her care. I wouldn't want my mother in that situation.

How must money can a wife have in her name, I have annuity account in my name name for three years. Want to spot for Medicade for husband

This paragraph is only half-true:

"Exceptions to this rule include items that are not counted as assets by Medicaid—any cash less than $2,000, a house (worth less than $500,000 or $750,000, depending on the state), a car, money used to plan a funeral or burial (up to $1,500), the cash value of a life insurance policy owned by the applicant, and real or personal property that is essential for life support (including income-generating rental property and real estate)."

First off, cash value life insurance is a "countable asset" when determining Medicaid eligibility. That statement is incorrect.

It is true that a house is also not a "countable asset" when determining if the home equity is less than $552,000. However, since this article is about gifting assets, if someone gifts their home that gift will disqualify them from Medicaid the same way any other gift would disqualify them.

S. Olsen

I don't think the part about the cash value of a life insurance policy not being counted as an asset for purposes of applying for Medicaid. When we went through the process with my mom, Medicaid insisted on documentation showing the current cash value of her life insurance policy (which was only $3000) and delayed approval until they got it straight from the insurance company.

What kind of proof do you need if they give you cash?

Someone needs to correct the paragraph which says houses up to 500-750,000 are not counted....this is only true if there is a Community Spouse (or a few other very rare individuals). A lot of Medicaid applicants are widows and if they own a home, it is definitely an asset that must be used (sold now, or later though MERP). If a widow has a house it can't even be rented out--that would disqualify for M.A... many family members get all upset that grandma's house will no longer be in the family, but unfortunately it needs to be used, for grandma.

My friend is disabled and her husband is unemoyed. Friends mom paid her mortgage off in the amount of $35000.00. Payment made directly to lender. Do either parties need to file any additional tax forms? Technically not a gift, friend will pay mom back whenever she gets back on her feet.

Great article! The misunderstanding regarding The Gift Tax is perfectly explained in this article! I assume that the exclusion of the $14,000.00 is for the Year 2014.