Mom gave my brother over $100K to buy a house. How does that affect her Medicaid application?

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My Mom (87) is in poor health. She gave the money to my brother in 2010.

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This question can only be answered by an adviser in your state who knows all the facts of your mother's case, and the Medicaid regulations that apply in your state.

Has your mother already filed a Medicaid application for care in a facility? A $100,000 transfer four years ago would have to be listed on the application, and it would disqualify her. This would be a serious problem.

If your mother hasn't applied yet, you need a plan to deal with the asset transfer, the 5 year lookback period, and your mother's need for care as her health declines. Getting professional advice you can rely on, and professional preparation of the application, is the best way to protect your mother's health and financial well being.
Mom will have a 100K transfer penalty in which Medicaid will not pay for any of her care till the penalty is either paid back (with the funds used towards her spend-down) or the penalty period is over.

The penalty is based on your states Medicaid daily reimbursement rate for room & board. Like for TX it is about $ 145.00 a day so a 100K penalty means that roughly for 670 days (almost 2 years) Medicaid will not pay a penny for her care. Even if mom is currently impoverished and qualifies for Medicaid (that means mom meets the financial and medical needs for Medicaid), she will be ineligible for Medicaid to pay for any of her care. There is a specific formula in how the penalty is done and the date at which the penalty is based on.

So who is momma going to move in with? or is brother going to private pay for mom for the full penalty period?
If Mom gifted $55,000. To five children in October 2011 and now is spending down for private care her last remaining annuity of $40,000 at $2500 per month would it be logical to assume that the children could gift back to Mom $25,000 and then apply for Medicaid after all assets are gone? Or wait and let the reviewer decide what to do?
You either pay back ALL $55,000 or you wait until AFTER OCT 2016. There is no halfway with Medicaid, they are rather obstinate.
Newfiegirl, yes these are considered gifts and will trigger a penalty under the Medicaid 5 year lookback. I assume the $13,000 amount was to avoid gift taxes, which it does....but it does NOT avoid Medicad lookback.

Angel
suggest that she move in with your brother, since she paid for the house, and forget about it, how she chooses to spend HER money is none of your business. if she's deliberately trying to con the system they'll figure it out, again none of your business. why are you so interested in all of this, unless it directly affects you or you're legally responsible she sounds like she's highly unethical, or financially stupid, or both. i'd stay the blank away.
My understanding is that any gifts given to family will be penalized by Medicaid. Others on here may have more experience in this, but I was worried about Mom paying my brother back for what he lost when the house he paid for that she lived in was foreclosed. An elder law attorney told me if we kept records noting she was paying him back and not giving him financial gifts, we should be okay.
Medicaid will deny the first $100,000 in payments for her care. It's that simple.
How did she do that? You certainly can't gift that much money, without a tax penalty.
The Mediaid look back period is five years. If she has funds to pay for until the date in 2015, then Medicaid can be applied for unless there have been other gift during this time. If she needs care now, Medicaid will not pay until that $100,000 is repaid to her.

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