On 5 yr look backs for long term care pd for by Medicaid, does it matter if you sold property 3 days ago or 4 yrs 7 months ago, does a state have a percentage pay back or they take all 100 % of money back no matter when property sold?
That spending is still on YOU, M2M. if you took 20 relatives on family cruise you might have one assessed for 19/20 of cost..you might spend foolishly but still on yourself not say deadbeat sons;).
But, and, correct me if I am wrong, the profit from the sale of a house does not have to go to that person's care, it just can't have been gifted.
For example. I sell my house in 2015 while I am healthy and can take care of myself. I net a tidy profit of $50K and decide to take a whirlwind trip around the world, spending all of it. I then become ill and run out of money for my care. When I apply for Medicaid in 2017, the blown cash will not be penalized, as long as it was not given as a gift.
The date of the look-back is the application date for Medicaid. Transfers within that period are treated at 100% no matter when they occurred - if they took place on day 3 or day 333. Please note that the state does NOT "take back" any money or property from the "giftee" or person receiving care. Medicaid is an entitlement program that you have to qualify for because you have a financial need for care that you have basically exhausted all your personal assets before applying for. "Gifting" does not apply to payments made to an employee or contractor that declared the income or family that had a specific caregiver agreement in place that is Medicaid compliant and financials properly reported IN ADVANCE of applying for Medicaid. If the State Medicaid program determines that a person applying for medicaid transferred or "gifted" away assets to another person- things like money, bank accounts, real estate property, stocks, etc - that could have been used for their care, a "penalty" is applied. The penalty means that the State Medicaid program will pay nothing to the facility for person's care until the transfer penalty has run its course. Example: Daily room rate is $200 per day. Person transferred $20,000 to family member. Medicaid imposes a transfer penalty of 100 days. That means person, family, friends, etc. will have to come up with private pay for 100 days before Medicaid will pay a dime towards the bill. If a person is already in the nursing home "Medicaid pending" and Medicaid is denied because of gifting penalty, the person or their family will have to come up with the money for the nursing home for the transfer penalty period or risk being sued for non-payment or the patient being made a ward of the state, any remaining patient's assets including any exempt house or car being seized for their care by the guardian appointed by court, and patient being moved to another facility, perhaps not close to family or as nice. If you think transfers have occurred that might cause a problem with Medicaid application, seek legal help NOW. You need a lawyer familiar with both Medicaid and elder care. Many lawyers plan out estates for avoiding probate, and that does not always work for Medicaid.
Yes it does matter if you sold property within the 5 year look back context. Medicaid will want to know where that money went and if it is not available to pay for her care why? Medicaid will want the profit from that sale used first before they will approve her for Medicaid. When it was sold during those 5 years does not matter. Where's the money from the sale?
For example. I sell my house in 2015 while I am healthy and can take care of myself. I net a tidy profit of $50K and decide to take a whirlwind trip around the world, spending all of it. I then become ill and run out of money for my care. When I apply for Medicaid in 2017, the blown cash will not be penalized, as long as it was not given as a gift.
Is this how it works?
Please note that the state does NOT "take back" any money or property from the "giftee" or person receiving care. Medicaid is an entitlement program that you have to qualify for because you have a financial need for care that you have basically exhausted all your personal assets before applying for. "Gifting" does not apply to payments made to an employee or contractor that declared the income or family that had a specific caregiver agreement in place that is Medicaid compliant and financials properly reported IN ADVANCE of applying for Medicaid.
If the State Medicaid program determines that a person applying for medicaid transferred or "gifted" away assets to another person- things like money, bank accounts, real estate property, stocks, etc - that could have been used for their care, a "penalty" is applied. The penalty means that the State Medicaid program will pay nothing to the facility for person's care until the transfer penalty has run its course. Example: Daily room rate is $200 per day. Person transferred $20,000 to family member. Medicaid imposes a transfer penalty of 100 days. That means person, family, friends, etc. will have to come up with private pay for 100 days before Medicaid will pay a dime towards the bill. If a person is already in the nursing home "Medicaid pending" and Medicaid is denied because of gifting penalty, the person or their family will have to come up with the money for the nursing home for the transfer penalty period or risk being sued for non-payment or the patient being made a ward of the state, any remaining patient's assets including any exempt house or car being seized for their care by the guardian appointed by court, and patient being moved to another facility, perhaps not close to family or as nice. If you think transfers have occurred that might cause a problem with Medicaid application, seek legal help NOW. You need a lawyer familiar with both Medicaid and elder care. Many lawyers plan out estates for avoiding probate, and that does not always work for Medicaid.