No longer being able to offer care to a loved one is a tough situation that many must face. You may be wondering what you can do to help. Here are some answers to frequently asked Medicaid questions.
Medicaid Questions | Can I Give Away $14,000 and Still Qualify for Medicaid?
Clients often confuse the federal gift tax exemption of $14,000 with Medicaid eligibility. The $14,000 that individuals are permitted to give away each year per person only refers to the US state and gift tax laws. This tax exemption has nothing to do with Medicaid in New York. These gifts may disqualify donors from receiving Medicaid, and donors may be penalized regardless of what the federal US income and gift tax rules are.
Medicaid Questions | Transferring Assets to Qualify for Medicaid in New York
If assets are transferred for the purpose of qualifying for Medicaid, a person may be disqualified from Medicaid eligibility. The Social Services Department will ask for the person’s records for the past five years, and any transfers that were made for the purpose of qualifying for Medicaid in New York may disqualify the individual from receiving benefits. However, there are certain exceptions to this. If a person has a past pattern of making gifts such as for wedding gifts, gifts to a religious institution such as a church, or gifts for grandchildren’s birthdays, and the person has been in good health, then it is possible to challenge this presumption of gifts made for the purpose of qualifying for Medicaid.
Medicaid Questions | When Is Real Estate Exempt for Medicaid Eligibility Purposes?
Many of my clients’ most valuable assets are their homes. There are many protections for those who own or rent property and are moving into nursing homes. If an applicant has a child caregiver, he or she may be able to transfer the house to the child without being penalized. If an applicant has a sibling who has helped the applicant with living expenses, the applicant may be able to transfer the house to the sibling. Also, applicants are able to transfer their homes to their spouses. In order to do this, it is important that Medicaid applicants have a proper power of attorney.
If you or a loved one is about to enter a nursing home or need assistance with Medicaid, the New York Medicaid Guide created by our Buffalo Elder Law Attorneys will help you manage your loved ones future.