At this point, many people are aware that the Federal law for Medicaid was overhauled in 2006, and the changes were not favorable for Medicaid applicants; a longer look-back period of five years, and now the period of ineligibility triggered by the gifting starts when the applicant has just about run out of money.
However, just when you thought this stuff couldn't get any more complicated, keep in mind that these 2006 gifting rules do not apply to Supplemental Security Income, better known as "SSI".
Medicaid is a benefit program that helps you pay for your long term care costs in the nursing home, and in the community under certain circumstances.
SSI is a monthly cash payment that provides minimal income to those over age 65, blind or disabled.
Both programs have very strict financial guidelines before eligibility is established (unlike Medicare and SSDI).
As far as the gifting rules for SSI go, that program uses the "old", more-favorable Medicaid rules. The look-back period under SSI is three years, not five. And the period of ineligibility for SSI begins when the gift is made, not when the applicant has otherwise spent his/her assets down below the asset limit ($2,000 for SSI).
Here's the standard disclaimer (you knew it was coming!): Do not attempt to incorporate planned gifting in regards to government benefits on your own. Seek help from an experienced professional.
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Posted by: Senior Planning NJ | January 17, 2012 at 10:31 PM