Gifting Without Medicaid Ineligibility

Many people believe gifting automatically causes a period of Medicaid ineligibility. However, you can make small gifts of $500 (total)

Douglas L. Kaune, Esq.

each calendar month without causing a day of ineligibility for receipt of Medicaid in the nursing home setting. This will result in $6000 of additional annual penalty free savings from nursing home spending. To learn more about the present law and exceptions, take a look through this comprehensive article on the Deficit Reduction Act of 2005 and the impact on Medicaid.

The ability to make the $500 monthly transfer without penalty is the kind of information that the public needs to know. However, the financial officers at the nursing home and the agents at the Department of Public Welfare are not there to tell people how to protect their money. That is not their job and they are instead there to watch out for the financial well being of their employers. They will not intentionally mislead you, they will just not help you plan. If you find that you or a loved one is in need of nursing home care or might be in the near future, you should seek counsel that will advocate for you and make you aware of the intricacies of the legal issues.

For questions or to review Elder Law and Estate Planning
opportunities please contact Douglas Kaune, Esq. at 610 933 8069 or at Dkaune@utbf.com.
Doug is a member of the National Academy of Elder Law Attorneys (NAELA) and a Partner with Unruh, Turner, Burke & Frees, P.C. which is a full service law firm with offices located in Malvern, Phoenixville and West Chester, PA and also serving clients in the counties of Chester, Montgomery, Delaware, Bucks, Berks and Philadelphia.