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Should We Lie to Medicaid About a Small Asset Transfer Made 3 Years Ago?
I am applying for Medicaid for mom, who has been diagnosed with Alzheimer's. Medicaid officials are doing a five-year look back at her finances and they want an explanation and verification for a $2,200 withdrawal three years ago, way before she applied for Medicaid and way before she was diagnosed with Alzheimer's. Can I say she gave the money to her grandchildren as gifts or should I say she bought a bed, mattress and dresser from an estate sale but I have no receipts? She has no money to hire an attorney so I am lost.
Tell the truth, no matter what it is. If you have no idea where the money went, tell them that. Explain that given how long ago this occurred, your mother’s health at the time, the small amount transferred (if any), and your mother’s other resources at the time (if she had any), she certainly did not make a gift in contemplation of qualifying for Medicaid. You can just make the best argument you can and let the chips fall where they may.
For more on Medicaid's asset transfer rules, click here.