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If the transfer was "allowable" (i.e., in general, the person received fair market value), there is no penalty.
If the transfer was not "allowable," the State will not pay for nursing home or similar services for the number of months that the amount of the transfer would have paid for those services at the private pay rate. The person may receive Medicaid coverage for other expenses such as doctors, hospitals, etc.
What else can I help you with?
Can a parent give money to an adult child before they sign up for Medicaid?
If the adult son is the one applying for Medicaid, money received from the parents prior to the application will likely have no effect on his eligibility. If the parent is the one applying for Medicaid and is a nursing home resident, please be advised that the Medicaid agency will investigate any transfer of assets by the parent, including gifts, that occurred in the 60 months prior to applying for Medicaid. The parent may be penalized for transferring assets without receiving "fair market value."
Can Medicare or Medicaid pierce an irrevocable trust?
It depends on how the trust is drafted. A properly drafted irrevocable trust, in Florida, will be invisible to Medicaid (Medicare doesn't factor assets into whether or not one is qualified the way Medicaid does). However, transfers of assets into the trust must be done 5 years before applying to medicaid or medicaid will assess a transfer penalty (this is referred to as the "five year lookback"). The transfer penalty is a period of ineligibility for certain medicaid benefits depending on the size of the transfer. As a result, irrevocable trust planning would not be appropriate for all Medicaid planning scenarios.
If me and my fiance move in together before marriage can she lose her medicaid coverage?
No, but when you marry, Medicaid will look at you and your spouse's income/assets.
What happens if you gift a home to someone then apply for medicaid nursing home?
Any change in the way an asset is held is a "transfer" of assets. The nursing home resident may transfer approximately $100,000 to the spouse living in the community without penalty. Otherwise, in general, if the State determines that the applicant or recipient did not receive "fair market value" for the transfer, it may decline to pay nursing home costs for the time that the transferred assets would have paid for that care. (Other medical assistance can be approved if the person is otherwise eligible.)
Is an irrevocable trust a safe way to protect funds from being gobbled up by medicare?
I think you mean medicaid. Medicare is the program for which seniors (and some others) are eligible. Medicaid is the program for those of limited means. The iirevocable trust works if the patient is not a beneficiary of the trust and conveyed his / her assets to the trust at least five years ago. If the conveyance was within five years, then the trust assets will be counted as the patient's assets for purposes of qualifying for medicaid.
Do working people pay into Medicaid program?
Medicaid does not have premiums. However, there is often a co-pay for services. Also, many Medicaid recipients must "spend down" excess income/assets. Spend down is the amount one must incur in medical expenses (paid or unpaid) before Medicaid eligibility begins. It is the difference between one's non-exempt income and assets and the income and asset standards in one's State - e.g., non-exempt income = $800/month/non-exempt assets = 0; State income standard = $700/month; spend down = $100.
Can medicaid take my house when I die?
I do not know about your medicaid circumstances, but as a general rule, when you die your assets (including your house) form your estate. Before your estate can be passed on to your heirs, all debts must be settled out of it.
Should you sell your mothers condo before applying for medicaid?
Apply for MeldicAid for WHO - you or your mother? If you, as long as it's not titled in your name you need not sell it. If your mother owns it, she/you need to check wiht the agency to see what the requirements are.
If you qualify for medicaid will you get back money taken out of medicare before qualification?
You are not required to pay back Medicaid or Medicare.
What if you get pregnant before you apply for medicaid?
you can still apply for it
What does spend down mean?
Spend down is the amount one must incur in medical expenses (paid or unpaid) before Medicaid eligibility begins. It is the difference between one's non-exempt income and assets and the income and asset standards in one's State - e.g., non-exempt income = $800/month/non-exempt assets = 0; State income standard = $700/month; spend down = $100.
Do you have to probate a will if everything is left to one person?
The necessity of probating a will depends on several factors, including the laws of the jurisdiction where the will is being probated and the assets involved. In general, if the estate has assets that require transfer of ownership, such as real estate or financial accounts, probate may be required to legally transfer those assets to the beneficiary.
