My grandmother has recently been admitted to a nursing home and she will likely need medicaid to pay for the expenses very soon.
The trouble is that she has gifted large sums (+$50k) of money to her kids (possibly within the past 5 years), which technically makes her ineligible for medicaid assistance because of the medicaid penalty rule about gifting and transfer of assets.It will be impossible for her kids to gather the gifted amount to return the gift.
Her admission to the care facility was unexpected, so she does not have any assets left to pay for her care out of pocket. What is a potential solution for this? Is there a solution to the rules around gifting and receiving medicaid? Can declaring bankruptcy be a solution?
Don't know if the state matters but she lives in Massachusetts
Edit: Thanks for the helpful info so far. The gifts weren't made with the intention of defrauding medicaid and hiding away her assets. Her remaining money is going to her medical care and nursing home, but that is burning through her assets very quickly and she still might be stuck in that penalty period while she is alive.
Submitted May 09, 2019 at 10:08PM by fusiformgyrus http://bit.ly/2HbujQY
