Trusts & Estates Law/Estate question

Advertisement


Question
My sister is in her 70's.  During the past several years, she has given me about $10,0000.  ($200 here$500 there $100 there etc.)As a gift.  Not a loan.
No large amount over $1000 at one time.
She said she heard that if she goes into a nursing home, (etc) they could come back after me for 5 years to pay back the money she has given me as a gift.  Is that true??  Would I have to pay back $10,000 ?  What if I don't have the money after 5 years?   thanks for your time....

Answer
It is very complicated and uses a formula.  But no they have to come after her not you.  What would happen is she would have to pay for $10,000 of nursing home costs before Medicaid would start paying.  It is called the Medicaid transfer penalty.  Don't worry about it.

David

Trusts & Estates Law

All Answers


Answers by Expert:


Ask Experts

Volunteer


David Disraeli

Expertise

I can answer general questions about estate planning and trusts. I can also answer questions about estate tax reduction and advanced charitable giving, family partnerships and asset protection. I may have already answered your question here: www.lifeplanblog.com or here www.pcfo.net

Experience

I have worked for 24 years with clients and their attorneys to formulate estate plans to meet client goals. I have found many mistakes made by client attorneys and were able to have them corrected. I focus on making sure that beneficiaries are protected from current or future spouses and lawsuits so the wealth stays in the family. I have also published a book on Aging Parents which can be found on Amazon https://www.amazon.com/dp/B003VP9WTG

Organizations
President and founder of The Personal CFO Inc.

Publications
www.pcfo.net www.lifeplanblog.com

Education/Credentials
Certified Financial Planner 1994

©2016 About.com. All rights reserved.