QUESTION

Medicaid Ineligibility Period: My mother is 85 years old. She is currently living at home with a health aide during the week. We are in the process of placing her in an assisted living repite care fora month to see how she is able to adjust and if this is the correct placement. Her current assets are a house (valued $250-275,000.00 and IRA assets of approx. $60,000.00. Two years ago my mother gifted my son for his wedding $1,500.00. Since then she has also turned over her 1995 atuo since she is no longer driving and gave a Christmas gift of $1,000.00. These were all done prior to researching and trying to understand the ramifications of Medicaid and Look Back Ineligibility Laws. I know I can't go back and retrieve these items. Is there anyway to avert a penalty at this time? What will the penalty be? I know we have a little while before we will be down to the $2,000.00 threshold for Medicaid.

Asked on Feb 21st, 2011 on Elder Law - New Jersey
More details to this question:
Medicaid Ineligibility Period: My mother is 85 years old. She is currently living at home with a health aide during the week. We are in the process of placing her in an assisted living repite care fora month to see how she is able to adjust and if this is the correct placement. Her current assets are a house (valued $250-275,000.00 and IRA assets of approx. $60,000.00. Two years ago my mother gifted my son for his wedding $1,500.00. Since then she has also turned over her 1995 atuo since she is no longer driving and gave a Christmas gift of $1,000.00. These were all done prior to researching and trying to understand the ramifications of Medicaid and Look Back Ineligibility Laws. I know I can't go back and retrieve these items. Is there anyway to avert a penalty at this time? What will the penalty be? I know we have a little while before we will be down to the $2,000.00 threshold for Medicaid.
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1 ANSWER

Elder Law Attorney serving Toms River, NJ
Partner at Diana L. Anderson
2 Awards
This is a difficult question to answer, because there are so many factors that affect Medicaid eligibility that it would not be possible, in the context of this forum, to address all of the potential issues.  Based on the information you have provided, Medicaid might question the two transfers that were make ($1,500 and $1000) but because of the total amount of those transfers, it does not appear as if there would be any penalty because the total amount is less than the Medicaid penalty factor.  Also - based on the total amount of your aunt's assets, you will not be applying for Medicaid for some time - and she will possibly live long enough, and her assets will last long enough that the two transfers/gifts will be beyond the five year look back period.
Answered on Oct 24th, 2011 at 11:38 AM

Diana L. Anderson, Certified Elder Law Attorney This response is not legal advice and does not establish any form of attorney/client relationship

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