Medicaid is a state-run program that provides health insurance to low-income people. They cover a variety of healthcare needs, including medical services, nursing home care, and even prescription drugs.
To qualify for Medicaid, you must meet specific eligibility requirements, which your state government determines. In general, however, there are three main groups of Medicaid recipients: children under 18, individuals whose incomes fall below the poverty line or are disabled or blind, and those who need long-term care, such as older adults in nursing homes.
To apply for Medicaid and other public benefits programs like SNAP (food stamps), visit Florida Health Help.
To qualify for Medicaid, a person must meet specific asset and income standard rules. In planning cases where a person has gifts of assets or large transfers outside of Medicaid planning tools such as trusts, waivers of rights to sue, etc. The Medicaid planning attorney must show that the transfer was not motivated by the qualification intent.
Why Gift Giving Can Be Harmful To Medicaid Eligibility
When it comes to Medicaid planning, gifting can be harmful.
If you plan to qualify for Medicaid in the future, giving away your assets before applying for Medicaid benefits can harm your Medicaid eligibility. For example, according to United States Medicaid laws, when you apply for Medicaid benefits, “the state in which you are applying will do a ‘look back at all of your financial transactions over the past five years. If you transferred any assets during this five-year timeframe with no reasonable value given in return—for example, if you sold a home and drove away from the closing without so much as a backward glance—then it is likely that these transfers will disqualify you from Medicaid coverage.”
Although it may be tempting to give away your assets before applying for Medicaid benefits, gifting can decrease Medicaid eligibility. For example, suppose a person transfers ownership of his house to his children and subsequently applies for Medicaid benefits. In that case, it may be difficult for the applicant to establish that there was no reasonable value given in return for the transfer. In light of this change about Medicaid benefits, most planners now advise clients who plan on qualifying for Medicaid benefits not to gift any assets until after eligibility has been determined. It is important to remember that you cannot receive Medicare or services unless you meet specific standards regarding income and resources.
The Role of The Attorney For Medicaid Eligibility
It is the responsibility of the Medicaid attorney to prove that there was no Medicaid intent found in the transfer. To do this, the Medicaid attorney must show that there are other reasons why you wanted to give away your money. For example, there are many reasons why you may have transferred ownership of your assets before qualifying for Medicaid benefits, including:
- You wanted to simplify your affairs.
- You needed cash for something else.
- The person receiving your gift did not have a job and could not support themself otherwise.
In either case, it is essential to work with a planning attorney who can help you find appropriate ways to transfer without jeopardizing your eligibility.
This means that the attorney must show that either the person who received the gift had too much income to qualify for Medicaid at the time of transfer or that there were not enough assets remaining to cover future medical expenses. For example, if a parent gives their child $30k right before they turn 65 and apply for Medicaid within five years, this could raise qualification issues.
It is possible to argue against this theory by proving that the parent has significant funds in their accounts (more than would be needed for future needs) or that they had more than two years of projected income (if given now), but these arguments are complex. If the case progresses, it may require an under path statement from someone else verifying where all of the parent’s assets went and why they were not available to pay for future medical expenses.
If a person were transferring money just before applying for Medicaid, there would be an assumption that the person made the transfer with qualification intent. The government may impose a penalty period that prevents or delays Medicaid from approval until the assets are spent down. It is better to make transfers at least three years ahead of time.
As you can see, attorneys are incredibly crucial for this process, therefore, if you are looking to Medicaid planning attorneys in Hollywood or other areas. OC estate lawyers can help you going forward into your Medicaid eligibility process.
OC Estates & Elder Law 