What actually happens if my dad gave a gift within the look-back period? I've read it makes him ineligible for Medicaid to pay for assisted living. But what does that mean? My wife and I take care of my dad who suffers with dementia. Our car broke down and my dad said he would pay for 1/3 of a new car, even though it is in my wife's and my name. Since we drive him everywhere, i.e. doctor, grocery shopping, out to eat four times per week, the bank, to his coin collection shops, etc, he wanted to help select the car so we bought one that he could easily get in and out of. He said it was only fair he paid 1/3 since the car is used so much for him. Anyway, he pitched in $10,000. I'm guessing this would be considered a gift since his name is not on the title. So what does this actually mean as far as the look-back period? If he needs assisted living before the 5 years is up, does that mean they won't take him? What if he doesn't have enough assets to self-pay? Will they just not take him? What is the deal with that? He currently still lives in his own home and my wife and I, or sometimes our daughter, go to his house 4 or 5 times a week just to get him out and also to clean, etc. We also have a care giver that comes to his once a week and she also takes him out to eat and shopping. But we have become increasing worried that the time is coming where he won't be safe living alone. We really appreciate him helping pay for the new car, but would not be able to pay it back if he needs more help in the next 5 years. Can someone please explain what really happens if a gift has been given within the last 5 years of entering an assisted living?