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Can a Gift Be Returned in Order to Qualify for Medicaid?

  • August 27th, 2013
My mother gave $30,000 away in 2008. She is now in a nursing home and will apply for Medicaid in about 12 months. Can we "give back" the money? If so, how is it done so as not to appear as a gift? She does not have the funds to cover a disqualification period.

Yes, you can return the money to your mother. This is known as a "cure" and, in effect, erases the original transfer for Medicaid purposes. And there's no problem with you making a gift to your mother. If each person is giving her $13,000 or less, it doesn't need to be reported. If anyone is giving more than $13,000, technically, it's supposed to be reported to the IRS, but with the newly passed tax bill, you'd have to give away $5 million before there'd be any tax.

Local Elder Law Attorneys in Ashburn, VA

Judith Mitnick

Needham Mitnick & Pollack, PLC
Falls Church, VA

Jean Ball

Hale Ball Carlson Baumgartner Murphy PLC
Fairfax, VA

Jeffrey Hammond

Hammond and Associates, LLC, Elder Law, Estate Planning, Wills, Trusts, Probate
Bethesda, MD

Last Modified: 08/27/2013

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