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| Name | Medicaid "Look Back" Period and Gifting Penalties | Cary NC | Carolina Family Estate Planning |
| Video Uploader | Video From Carolina Family Estate Planning |
| Upload Date | This Video Uploaded At 28-04-2016 14:00:01 |
| Video Discription | At Carolina Family Estate Planning, we understand that creating an estate plan is not the easiest topic to discuss. Perhaps the discussion started after a major life change, like a birth in the family or a loved one’s move to a nursing home. Regardless of the reason, rest assured that our firm is dedicated to providing members of the communities of North Carolina with extensive resources to help you make the best decision for you and your family. Together we'll create a plan that best fulfills your dreams and goals. We'll help you arrange your affairs in a way that is both personally satisfying and that meets your unique objectives—all while accomplishing substantial savings for your family in the long run. We believe in a team approach, working collaboratively with your other professional advisors. We will work closely with your financial advisor, accountant, insurance agent, or other advisors to ensure that your entire financial plan works together and is suitable for your situation. Learn every aspect of how to completely plan an estate in North Carolina: Wills, Trusts, and Estate Planning Alzheimer's Planning Asset Protection Medicaid and Long-Term Care Veterans’ Aid & Attendance Executors, Trusts & Probate Protecting Minor Children Resources for People with Disabilities Carolina Family Estate Planning 201 Commonwealth Ct #100 Cary, NC 27511 Phone: 919-443-3035 email: info@carolinafep.com How does the Medicaid “look back” period and gifting penalties work? When you apply for Medicaid, I wish it were as simple as filing an application but Medicaid actually has a right to be ruling nosy, they're called the payer of last resort and the burden is on you to prove that you're eligible for assistance and part of that is if you file that application, Medicaid has the right to go back 5 years from that date of application, to see what you were doing with your money leading up to this application. And they get to be really nosy and ask for a lot of information, they’ll ask for statements for every single account you might have owned during that 5-year window so maybe you closed the account 2 years ago, you'll still have to go back and get those records for the prior years before you close the account. They’ll ask about any real estate that you own, any automobiles, life insurance, anything that you own they're going to want information about it. And the reason they're being nosy is they’re going to go through all those information and they want to know that you didn’t just go and give or transfer everything away so that you can qualify for assistance. So when they're looking through that 5 years of records they are looking for gifts or transfers or they're called uncompensated transfers, so you gave something away and you didn’t get anything back. Usually, a gift to a family member will be a prime example. For any uncompensated account that they find in that 5-year window, they're going to assess a penalty period, currently, the divisor is $6,300 so what they're saying is for every $6,300 that you give away that’s going to equate to a 1-month penalty. So if I were to go through my 5 years of records and it turns out I gave away $63,000, they're going to take that $63,000 and divide it by $6,300 and say I have a 10-month penalty and what that penalty means is they say, “Well, we see that you’re in the nursing home and we see that you would have qualified for assistance if it weren’t for the fact that over the 5 past years you made some of these transfers. If you're in the nursing home and you're otherwise eligible that’s when the penalty starts. So they're saying now you're in the nursing home, you're below $2,000 in the bank and you have to figure out a way to pay for care for 10 more months before we’re going to start helping you. This is why we always caution people not to engage in gifting for Medicaid purposes without working with an elder law attorney because you're going to get yourself into a pickle really quickly. A common example is the IRS allows people to gift $14,000 per year free or gift tax. So a lot of people heard about that rule, their CPA might even mention that a tax is in and what they don’t realize is that that’s what the IRS lets you do but that’s not what Medicaid lets you do. Medicaid would still call those gifts, so you want to be careful about making any major gifts or transfers to family members unless you're working with an elder law attorney on an overall long-term care plan sometimes we might intentionally make some gifts or transfers but it’s usually a part of a bigger overall plan and we know how we’re going to handle that penalty period if it becomes an issue. https://www.carolinafep.com/practice_areas/medicaid-and-long-term-care-in-north-carolina.cfm https://www.youtube.com/channel/UCSCpaChv6O0Ryvex7f1oa7Q https://youtu.be/4fTWRyV1X_c |
| Category | People & Blogs |
| Tags | Carolina Family Estate Planning | Cary NC | Medicaid Requirements | Medicaid gifts | Medicaid lookback period |
