Follow
Share

Dad will be gifting me some money in 2026. An attorney is drafting up a gift letter with full explation. Attorney will witness and sign the letter along with dad. Dad is 95 years old. The doctor has agreed sound body and mind. This will be done in attorney's office. Any possible future dispute from estranged sister? Dad has adjusted will for this early advance, so end result will be 50/50 split. Location NY state.

What are the odds of your Dad ever needing Medicaid if something happens to him the week after you deposit that gift check? There's a 5-yr look back in most states. Are you doing this with an elder law attorney? If not, this is the type of attorney who you need to ask questions about Medicaid.
Helpful Answer (2)
Reply to Geaton777
Report

Billy, you've written about this before. This is perfectly legitimate with regard to your father's will and estate. The question you should ask the attorney is how this will impact your father's ability to qualify for Medicaid-funded nursing home care if he needs it within the next five years, as gifting you this money will result in a penalty and delay.

If that is not of concern to you (your dad will be able to afford a nursing home on his own, and you will not end up homeless if your dad's house needs to be sold or will acquire a lien to repay Medicaid after he passes away), then go ahead.

You might also talk with the attorney about having your dad pay you directly, at full market wages, for the caregiving you are doing for him, to make up for the large salary cut you've taken to do this. You can't get paid retroactively, but you can set up a contract to be in effect going forward.

This is all to make sure that you have protected your own financial future during these many years of providing nearly full-time live-in care for your father.
Helpful Answer (5)
Reply to MG8522
Report

I would be more concerned about running afoul of Medicaid divestment rules. Will your father have enough money, after making the gift to you, to pay for five years in a long-term care facility?
Helpful Answer (5)
Reply to Rosered6
Report

Ask a Question
Subscribe to
Our Newsletter