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My Mom (87) is in poor health. She gave the money to my brother in 2010.

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This question can only be answered by an adviser in your state who knows all the facts of your mother's case, and the Medicaid regulations that apply in your state.

Has your mother already filed a Medicaid application for care in a facility? A $100,000 transfer four years ago would have to be listed on the application, and it would disqualify her. This would be a serious problem.

If your mother hasn't applied yet, you need a plan to deal with the asset transfer, the 5 year lookback period, and your mother's need for care as her health declines. Getting professional advice you can rely on, and professional preparation of the application, is the best way to protect your mother's health and financial well being.
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Mom will have a 100K transfer penalty in which Medicaid will not pay for any of her care till the penalty is either paid back (with the funds used towards her spend-down) or the penalty period is over.

The penalty is based on your states Medicaid daily reimbursement rate for room & board. Like for TX it is about $ 145.00 a day so a 100K penalty means that roughly for 670 days (almost 2 years) Medicaid will not pay a penny for her care. Even if mom is currently impoverished and qualifies for Medicaid (that means mom meets the financial and medical needs for Medicaid), she will be ineligible for Medicaid to pay for any of her care. There is a specific formula in how the penalty is done and the date at which the penalty is based on.

So who is momma going to move in with? or is brother going to private pay for mom for the full penalty period?
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If Mom gifted $55,000. To five children in October 2011 and now is spending down for private care her last remaining annuity of $40,000 at $2500 per month would it be logical to assume that the children could gift back to Mom $25,000 and then apply for Medicaid after all assets are gone? Or wait and let the reviewer decide what to do?
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You either pay back ALL $55,000 or you wait until AFTER OCT 2016. There is no halfway with Medicaid, they are rather obstinate.
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Newfiegirl, yes these are considered gifts and will trigger a penalty under the Medicaid 5 year lookback. I assume the $13,000 amount was to avoid gift taxes, which it does....but it does NOT avoid Medicad lookback.

Angel
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My understanding is that any gifts given to family will be penalized by Medicaid. Others on here may have more experience in this, but I was worried about Mom paying my brother back for what he lost when the house he paid for that she lived in was foreclosed. An elder law attorney told me if we kept records noting she was paying him back and not giving him financial gifts, we should be okay.
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Medicaid will deny the first $100,000 in payments for her care. It's that simple.
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Medicaid imposes a 5 year look back period, and since your mom gave your brother $100K within the 5-year look back period, it can affect her application for medicaid's long-term care benefits. As stated in infolongtermcare, she will be subjected to a penalty disqualification period, it depends on the value of the asset you transferred and the cost of care in your location. Supposed the cost of long-term care in your area is $50K per year, and your mom gifted $100K to your brother, then medicaid will only start paying 2 years after your application.
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Thank you for the advice it is very helpful.
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Newfiegirl, yes, that will be considered gifts if your father applies within the next two years.
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