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Will Mom’s Utility and Tax Payments on a House She Transferred Count as Gifts?

  • September 21st, 2016
Q
My mother turned her home and the farm over to me and my two brothers more than seven years ago, but she continued to pay the utilities and taxes on the property. She is now in a nursing home and will be applying for Medicaid within the year. Will the money she spent during the look-back period on taxes and home utilities have to be paid back or count as penalties for Medicaid?
A

That is a good question and the answer depends on local practice. If your mother continued to live in the home, Medicaid may consider that your mother made the utility and tax payments in lieu of rent rather than as gifts to you and your brothers. In other words, instead of paying you rent, she paid the housing expenses. But to be sure, you’ll have to check with a local elder law attorney. To find an attorney near you, go here: http://www.elderlawanswers.com/elder-law-attorneys

Local Elder Law Attorneys in Ashburn, VA

Judith Mitnick

Needham Mitnick & Pollack, PLC
Falls Church, VA

William Fralin

The Estate Planning & Elder Law Firm PC
Bethesda, MD

Margaret O'Reilly

Margaret A. O'Reilly, PC
Herndon, VA


Last Modified: 09/21/2016

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