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
Margaret A. O’Reilly is an estate planning and elder law attorney with over thirty-five years of legal experience. Attorney O’Reilly graduated from Duke University with a degree in psychology, and received her law degree from Northeastern University School of Law in Boston, Massachusetts. For over 15 y...
In practice since 1987, Fairfax Attorney Evan Farr is widely recognized as one of the leading Elder Law, Estate Planning, and Specials Needs attorneys in Virginia and one of foremost experts in the Country in the field of Medicaid Asset Protection and related Trusts. Evan Farr has been quoted or cited as an expert by n...