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asklegal Asked October 2014

I'm about to sell my home for $100,000. Can I gift some money to my children?

I live in senior housing, receiving food stamps and Medicaid.

EXPERT Ralph Robbins Oct 2014
Many confuse the financial requirements for Medicaid Long-Term Care programs with those of other Medicaid and relief programs. There are different financial requirements for different programs.

The fact is that asset limits have been removed for many food stamp programs (SNAP) in most states although income limits remain. (For a list of state asset limits go here: http://assetlimits.newamerica.net/content/asset-limits-your-state)

Similarly, there are senior housing programs with income limits, but no asset limits.

So the answer to your question is yes, you can probably gift the proceeds from the sale of your home to your children without jeopardizing your benefits. Keep in mind, however, that if you apply for Medicaid Long-Term Care benefits within five years of such a gift, you may be penalized and have to wait before receiving benefits.

I can't imagine why you would want to gift assets to your children when the likelihood is that you will need these funds yourself. If there is residual at your demise let them have it then.

However, if you are adamant about making gifts, I would encourage you to first talk to an advisor familiar with Medicaid eligibility for Long-Term Care so as to find a transfer strategy that will not harm you if you require Medicaid Long-Term Care benefits.

pamstegma Oct 2014
No, you can't. Medicaid and food stamps would stop cold. Your assets have to go to your care. In fact once, you have $100,000 you will be back on self-pay until you have spent down to your last $2000.

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freqflyer Oct 2014
I know that home ownership is exempt from qualifying for food stamps, but it still seems strange to me that one can still have a lot of equity in a home and still get food stamps.

Livelifefull Oct 2014
Senior Housing, possibly that is not his to own? I am not sure. I don't want to guess, but both answers are correct, not that anyone needed to hear that, especially pam, oh gosh, medicaid officials would be garnishing something and canceling medicaid faster than the word boo.

Livelifefull Oct 2014
Excuse ME I WAS UP LATE AND UP EARLY THIS AM.. SORRY HE IS SELLING HIS HOME.. GOT IT… SORRY ABOUT THAT, and yes it does seem odd, but $100,000 for a home, I do not know the rules on food stamps, depends on the state, etc. or actually probably medicaid rules. I would wonder about that. hummm.
Now I am up!!!! Good morning to all :-)

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