Elder Law Answers
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Read moreWho Pays Nursing Home During the Lookback Period?
- November 5th, 2024
Q
If property was gifted from a Medicaid applicant within the five-year lookback period, who is responsible for paying during the penalty/denial period? My dad is in a nursing home now, but gifted me 5 acres of land last year. My sister is power of attorney, but I know my dad has limited funds until he will have to apply for Medicaid. I know the nursing home cannot evict him, but I am curious who will be responsible for paying for his care if he is denied/delayed Medicaid due to this transaction.
A
This is a common situation in which the nursing home often gets stuck footing the bill. The nursing home resident is ineligible for Medicaid due to the transfer, but has no money left to pay the charges. They often apply pressure on the family to either come up with the funds to make payment or correct the problem preventing Medicaid eligibility. In this case, that would mean your conveying back the property to your father. It can become uncomfortable for family members to visit when this kind of dispute is going on.
It's up to you and your family to decide on the solution, whether stonewalling the facility, paying for your father’s care during the balance of the penalty period, or correcting the situation so he can qualify for Medicaid. There may also be exceptions to the transfer penalty or other planning opportunities available. We recommend that you consult with a local elder law attorney to determine the best approach.
Harry S. Margolis practices elder law, estate, and special needs planning in Boston and Wellesley, Massachusetts. He is the founder of ElderLawAnswers.com and answers consumer questions about estate planning issues here and at AskHarry.info.
Last Modified: 11/05/2024