What is the lookback law and how much money can an aging parent give?

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My father in law gave my husband 96000 to buy a house after his wife died but now that he has blown all his money he tells people he is broke because his money is tied up in our house. We now are answering adult protective services calls, did we do something wrong? We asked him if he wanted it to be a loan numerous times but he insisted it was my husband's inheritance.

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The lookback law or term in regard to Medicaid is that you have to have all checking account, savings account transactions, et al.
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Someone has called protective services or they wouldn't be calling. As Michael already said, just answer their questions and they will be satisfied.
As to your question, the look back is 5 years. If the house money was longer ago than that, there's no problem. If it was more recent than that, then it would only apply if you intend to apply for Medicaid. If you do, then they would disqualify him from receiving Medicaid assistance till the $96,000 had been spent on his care. Then you would reapply.
Also, if he has more than $2,000 in cash or other non-exempt items, he would not qualify. He can own a home but when he dies Medicaid will recoup their money from the sale of the home.
Hope this helps...good luck!
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Don't worry about adult protective services calling. Sometimes it is just a formality. Just answer their questions honestly if you have not done anything wrong. There is nothing to worry about. They are trained to recognize things for what they are. They consider the mental state and everything that comes with the elderly as well as the behavior of people in their environment.
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No other issues with siblings, his mind is starting to go now so maybe its more about his state of mind now and the house really isnt the issue but just a question? Thank you fir answering
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The "lookback" applies to people who need medicaid to pay for their care, understandably the gov't doesn't appreciate people giving away their assets and they expecting to be cared for on social assistance. Generally the lookback period is 5 years, so if he is self supporting beyond that the gift to you husband would not be included. I hope you did the transfer legally and consulted a lawyer.
The investigation sounds like something else, someone feels you have taken advantage of him financially. Are there other sibs who may be resentful? Is there any hint he was not thinking straight when he made this gift?
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