If I Pay My Mom's Expenses, Would that Be Considered Repaying a Transfer When She Applies for Medicaid?

Question

If I Pay My Mom's Expenses, Would that Be Considered Repaying a Transfer When She Applies for Medicaid?

September 17th, 2015

Q

My mom transferred $50,000 to me two years ago. If I now pay for part of her assisted living expenses, will the amount I pay be considered repayment (or partial repayment) of the original gift for Medicaid eligibility purposes, assuming she would otherwise qualify for Medicaid within the five-year look back period?

Answer 1

A

It depends on your state Medicaid agency. Some will treat such payments as repayments and shorten the ineligibility period imposed accordingly, or eliminate it entirely if you use the entire $50,000. However, others will only honor payments going directly to your mother rather than expenses paid on her behalf, and some will only give credit for a complete "cure" -- the return of the entire $50,000. To know the practice in your state you will need to consult with a local elder law attorney. To find an attorney near you, go here: http://www.elderlawanswers.com/elder-law-attorneys.

For more on Medicaid’s asset transfer rules, click here.

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