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gifting after sale of farm before medicaid

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My father passed away 4 years ago.  My mother is 99  and in long term care and we just sold their farm.  Medicaid says that they check back 5 years to see if there is any other income or if any gifting had been made.  She wants to gift each of her children (4) $13,000 and also the spouses the same amount.  Can this be done on behalf of my father's ownership of the farm before he died, or will medicaid make the gifts be paid back if she goes on medicaid before 5 years.
asked Apr 3, 2012 by anonymous

1 Answer

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Medicaid examines all gifts and transfers made by an individual within 36 months of the date of the application (the look-back is 60 months for gifts to trusts). Financial transactions made more than 36 months before the application are not subject to the look-back. Medicaid is determining if the applicant received fair market value for all transfers or whether the transfers were really gifts.  Where the applicant did not receive fair market value and for gifts, transfers are subject to penalties imposed by Medicaid.
answered Apr 16, 2012 by anonymous
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