Are Uniform Transfers to Minors Act (UTMA) accounts that are owned by a child counted by Medicaid towards a grandfather's...Read more
If your mother applies for Medicaid, the 529 plan could be considered an available asset. This means money in the 529 account must be exhausted before Medicaid will pay nursing home bills. In addition, spending the money in the 529 account for medical bills instead of for college will trigger deferred taxes, plus penalties of 10 percent (or up to 20 percent in some states) that apply if the money is used for something other than education. In order to prevent this, your mother could transfer the plan to you. However, this may trigger a Medicaid penalty period because it could be considered a transfer of assets. To find out the best solution for your family, contact an elder law attorney in your state. Here is a directory of attorneys: http://www.elderlawanswers.com/elder-law-attorneys.
For more information about 529 plans, click here.
Local Elder Law Attorneys in Ashburn, VA
Judith Mtinick is well known for acting as a guardian, conservator, trustee or agent on behalf of clients or by court appointment. This experience gives her a wide perspective and extensive practical knowledge that she uses when advising clients in drafting their planning documents. Her experience, as a court appointed...
Mindy Felinton concentrates in the areas of Medicaid planning, Veterans' Benefits, asset protection, nursing home planning, elder law, wills, estate planning, trusts, living wills, powers of attorney, probate administration and trust administration and began her legal career 30 years ago as an Assistant State Attorney...