QUESTION
Can Assisted Living Facility not allow gifting
Asked on Jul 01st, 2013 on Elder Law - New Jersey
More details to this question:
My inlaws just signed a application and submitted a deposit for an assisted living facility in NJ. The financial section listed a statement that the assets listed will not be used for gifting. What does this actually mean. They occasionally give us monetary gifts, but are always below the federal limit. Can they still do this? Or does this mean that, only if they run out of money to pay the facility, the facility can have access to the gifted money. My inlaws both have long term care insurance, and full pensions, so there is little chance they would run out of money.
1 ANSWER
2 Awards
the reason the long term care facility is not allowing gifting is that they are concerned that the assets will run out, and your inlaws will not qualify for Medicaid because they have made gifts. Do not confuse the federal gift tax limit with Medicaid rules. If your inlaws live at the facility long enough, and run out of assets, any gifts they made within five years of applying for Medicaid will make them ineligible for Medicaid.
Answered on Jul 04th, 2013 at 8:57 PM
Diana L. Anderson, Certified Elder Law Attorney This response is not legal advice and does not establish any form of attorney/client relationship