Regardless of the amount, any gift that is made is a transfer and is subject to a look-back period of five-years for Medicaid purposes. Call us today for a FREE consultation and find out the best legal and financial plans for your money.





Regardless of the amount, any gift that is made is a transfer and is subject to a look-back period of five-years for Medicaid purposes. This doesn’t mean that the State will take that money, but rather, that the State will not pay for the donor’s long-term care costs until the five-year look-back is exhausted, or in the alternative, until all the gifts that have been transferred are used to pay for the institutionalized person’s care.

The sum that most clients feel that can be gifted (erroneously) without a look-back is $10,000. This amount actually relates to the annual amount that can be gifted on an annual basis to as many individuals as the donor wishes without the need to file a gift tax return. However, the exemption in 2009 for gift giving on an annual basis is $13,000 per donee per year. This is only a tax amount gift, and is not a Medicaid or asset protection plan exempt amount. A gift of $13,000 from a parent to a child will constitute a non-taxable gift, but this gift will carry with it a waiting period of five-years relative to Medicaid qualification.

Far too often, family, friends, and other non-professional advisors provide well-intended but erroneous advice that can lead to significant adverse consequences if relied upon. If in doubt, it is always appropriate to contact a professional accountant, attorney, or other financial advisor for the appropriate and up to date laws relative to gifts, Medicaid planning, taxes, etc.


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Pennsylvania Estate Planning Lawyers, Jim Shields and Tom Boris are experienced legal and financial professionals able to deal with the most complicated cases involving medicaid, probate, veterans benefits, and much more.

If you have any questions or would like a free consultation call us toll free at 1 800 879 0984 or send us a message through our website by clicking here and we'll be certain to respond.

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