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I understand the 5 year look back rule on gifted money, but does anybody know how Medicaid views gifted money given when the person who received it has passed away? Do other family members have to step up and pay the money back in order for their loved one to be eligible for Medicaid?

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The money was gifted. Doesn't matter to the Government at all why, or wherefore, or the demise of life of the recipient. The money would need to be returned; they would not care by whom. And then that would be money that would be spent down. Sadly, as far as I know, that is the case, and is the rules, but you can call Medicare (who also manages Medicaid) and ask for an advisor to answer that question for you.
I wish you good luck.
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Reply to AlvaDeer
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When money is gifted a penalty is given. The person cannot get Medicaid until the penalty is satisfied. (there is a formula) So either family cares for the person during the penalty period or the family pays privately for LTC until penalty is over. So family may need to go after who was given the gift and ask for it to be given back. If one of the persons gifted has died and the gift was not spent, then its now part of their estate.

I don't think Medicaid goes after family for money. It's not up to them to make sure family can get Medicaid. Family is told what they need to do and it's up to them to do it. Just like if a lien is put on a house after death, it's up to family to sell the house, Medicaid does not take the house. It could sit there and rot for all they care. But if sold, they get their money.

I agree though, that you may want to consult with an Elder Lawyer who is versed in Medicaid.
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Reply to JoAnn29
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You can’t get the best legal advice here. I suggest you call a lawyer. If you don’t want that expense, there are sites on the web where lawyer will answer 1 question for free that would be most accurate. Go to wwwjustanswer.com.
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Reply to KathleenQ
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