If you are like the majority of my clients, you have probably given assets to your children over the past few years. This could include $1000 at Christmas, the IRS gifting exclusion of $14,000, giving them a few acres from the family farm to build a house or giving them a couple hundred dollars here and then to pay for their gas or time if they are helping take care of you.
Medicaid looks back over the past five years to see what you have done. If you have given things away, Medicaid penalizes you on those gifts. The rules say for every $6327 given away, Medicaid won’t pay for one month in the Nursing Home, Assisted Living or In-home care.
Prior to the new rules, if the children could give back a portion of the money, you could try to protect the remainder.
However, under Ohio Medicaid’s new rules, if you go into a nursing home or need in home care within 5 years of the gift and your children cannot give you back ALL of the money, you could have a big issue. Medicaid now says that you are penalized on the entire amount if only a portion of it is given back. So what that means for you is that if your kids cannot give you all of the money back Medicaid is not going to pay for your care and you may not have a way to pay through that penalty.