Elder Law Answers
Will I Have to Fill Out a Gift Tax Form If I Pay My Child's Bills?
If we pay our child's bills, is that the same thing as gifting her $14,000 [the current annual gift tax exclusion]? Do we...
Read moreIf I Pay My Mom's Expenses, Will That Affect Medicaid?
- May 17th, 2024
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?
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. Find an attorney near you,.