“My accountant told me that I can gift each of my kids $15k without getting taxed.
But will it hurt my chances of getting Medicaid?”
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Yes, it will cause a HUGE problem!
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This is where most people get confused between tax rules and Medicaid rules.
When you apply for Medicaid, one of the questions will be:
Have you transferred anything out of your name (i.e. money to family members) in the past five years?
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❌ Although you won’t get taxed, you’ll hurt your chances of getting Medicaid.
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So for Medicaid purposes, you gotta get it all out of your name before that five-year mark. Way before you even THINK you might need Medicaid help.
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👉 One thing a lot of older people do is open a family trust.
That way Grandma doesn’t feel like she’s losing control over all of her assets while trying to get everything out of her name.
William Wombacher, your Central Illinois Certified Elder Law Attorney (CELA) and Social Security Disability Specialist. I’ll help you!
Call me at 309-674-8125, visit at www.wombacherlaw.com
Serving Peoria, East Peoria, Peoria Heights, Pekin, Dunlap, Chillicothe, Morton, Washington, Metamora, Canton, Galesburg, Lacon, Henry, Bloomington, Normal and surrounding cities and counties of Peoria, Tazewell, Woodford, Fulton and Knox Counties in Central Illinois.
#EstatePlanning
#Medicaid
