I am doing the numbers and see no downside. Our mother is getting ready to enter an assisted living facility, she has (had) $150,000 in a bank account. $42,000 has already been gifted away. If we gift away the balance before we make a Medicaid claim, then acknowledge that the entire $150,000 was gifted withing the 5 year look back period, the will take the $150,000 and divide that by the Medicaid divisor for our state ($8,084 per month) to get the number of months that she would be excluded from receiving Medicaid benefits (about 19 months). So for 19 months, we have to pay for her assisted living cost. Let's assume that it does cost $8,000 per month. We pay 19 months at $8,000, less the $2,200 per month that she gets from her pension and SS, that comes to $110,200. So at the end of 19 months we are left with $39,800 that we wouldn't have had if we didn't drain the account. Am I missing something here or is this the way to go?