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Mom sold her condo and is moving into a retirement apartment. Question is if she has to progress to assisted living or nursing home care and the money in savings is gone do the children have to worry about paying Medicaid the gifted monies back.when all is said and done? We live in Michigan.

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It depends on Mom's age and her health.   If she doesn't need Medicaid for another 6 years or more, than it probably would be ok to gift the money.   But without a crystal ball, we never know what will happen health wise.   I would suggest before Mom writes out checks, she consult with an Elder Law Attorney.

All it takes is one serious fall to change the whole future outcome.   Mom probably would need to move from senior retirement into Assisted Living.   And that would cost more per month.   She could have used the money she gifted.

Oops, Mom is running out of money and her health now needs a higher level of care.   Now what?   It's great that Medicaid is there to give a helping hand, but with the 5 year financial look back, and they see that Mom gave away her money, Medicaid would frown on that.   Mom would need to self-pay, or go live with one of her grown children until she can later qualify for Medicaid.

It's a lot to think about.   Wish it wasn't so complex.
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detersg, there is a 5 year look-back period for Medicaid. If you think she might have to apply for Medicaid in the next five years, gifting money wouldn't be good. If you think that she has plenty of money to last, then gifting the money would be okay. Something the kids might want to do if they can afford to is to set the money back just in case your mother needs it. This would be a good way to gift the money without your mother running short in the future.
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