The season of giving is almost upon us. There is no better way to celebrate than by giving gifts to your loved ones. If you are not careful you may be giving away your future as well. There is a limit on the amount of money that you can gift to friends and relatives if you plan on using Medicaid in the future.
The Medicaid Gift Penalty
Medicaid is a need based program that can help seniors who are financially troubled pay for medical costs. This includes things like extended care, home care or even long term care facilities. In order to meet the financial need requirements your Medicaid application will take a look at all of the assets that you have.
If you transfer a certain amount of assets within a five year period, that amount can affect your Medicaid eligibility; even if you weren’t sick at the time that you gave the gift. Sometimes even small gifts, which Medicaid will call transfers, can cause problems.
How Much is Too Much?
While federal law allows you to give a large amount (around $14,000 in 2015) without having to pay taxes on it that does not mean it is the limit for Medicaid transfers. Since Medicaid is a state run program that amount can vary greatly from state to state. That is why you should check locally to get exact amounts.
Stano Law group can help you with legal issues or Medicaid transfer amounts. Contact us today.