Are Payments to Third Parties Subject to the Five-Year Look-Back Period When Applying for Medicaid?
- November 6th, 2018
The answer is technically yes. It is a gift and subject to the five-year rule. Practically you might get away with it, but it’s a question of honesty and public policy. When you apply for Medicaid, the application asks if you’ve made any gifts during the prior five years. If you say no, the workers may not pick up a payment on behalf of someone else in your financial records. But do you really want to do this? Everyone complains about their high taxes, and Medicaid is one of the most expensive items for both state and federal governments. It pays for long-term care for people who can’t afford to pay for it themselves. It tries not to pay for people who have taken affirmative actions to make themselves poor. The five-year look-back period is an administrative convenience -- few people have reliable records going back further and it costs a lot for the Medicaid agency to review all of these records. Do you really want to circumvent that rule? Doing so means higher taxes for everyone (or more debt if we don’t pay the taxes).
For more information about Medicaid's asset transfer rules, click here.
Local Elder Law Attorneys in Ashburn, VA
The Estate Planning & Elder Law Firm PC
Bill founded The Estate Planning & Elder Law Firm, P.C. in 1994. Bill limits his practice to the areas of estate planning and administration, incapacity planning, Medicaid, asset protection planning, and elder law. He is one of (15) fifteen attorneys practicing in Virginia, Maryland and the District of Columbia, ce...
Ron M. Landsman, P.A.
Ron M. Landsman has been practicing elder law since 1983, before it was known as elder law, originally with Landsman and Laster, Washington, D.C., then Landsman, Eakes and Laster, also in Arlington, VA, and since 1990 in his own practice in Montgomery County, Maryland. He has been among the most active members of the...