While Grandma was living with us she had to pay bills for all living expenses, is this considered a gift?

You'd think the question they would ask is "Could she have lived cheaper or even at all on her own based on her income." If not, isn't the family subsidizing her?

Medicaid does not expect elder staying with family to live without expenses.

But paying a disproportionate share of costs, will be considered gifting.
Medicaid likely has a “living with others” set $ amount that’s used as divisor.
Medicaid will know exactly how much income she was paid last 5 years.
Medicaid will know exactly what she had in savings 5 years ago.
Between these 3 figures will be asset amount she should now have.
If it’s not, then Medicaid will look to see if gifting happened.

For example, If grannie came to live with you 5 years ago with 50k savings & $1200 a mo income (SS, retirement), that’s $122,000.00. If state has $1345.00 a mo as reasonable expense then there’s $41,300.00 that needs to be accounted for or penalty placed. Whomever was head of household then should take the lead on working with Uncle to figure out the situation.

If granny paid property taxes, that’s gifting. Not in her name property.
If grannie paid all the utilities for 4 person HH, 3/4 of that $ is gifting.
If grannie paid your Visa bill, thats all gifting.
If grannie paid her Visa bill, that’s her expense.

Your Uncle is right to be concerned as if things are considered gifting, as Medicaid will place a transfer penalty on grannie in which she will be ineligible for Medicaid to pay for her nursing facility even though she in now living in the NH and totally impoverished. Someone will have to private pay for her stay till the penalty period is done. Penalty is # of days based on amount gifted.

Really it’s in your best interest to find whatever paperwork, receipts, invoices, financial statements needed and figure out just what kind of penalty grannie could be facing. And please work with your Uncle on this to private pay the facility till gran is beyond penalty period. The reason why is that things like this can morph and you & your mom could have a APS or other law enforcement investigation to see if you all “exploited / took advantage of a vulnerable adult”. You really don’t want it to go there.......

The money grandmother contributed to the household as her fair share of its running expenses was not a gift.

If grandmother was supporting your mother and you by paying your respective fair shares of the expenses, that was.

What records have you got? Best next step is to look at all the bills, add up, and get a good clear picture of exactly what she spent on what.

Definitely, talk with the Medicaid agency. Expenses are not gifts, and Medicaid will take such things into consideration to make the gift determination. A gift has a specific legal definition, and the Medicaid agency is the only one to listen to as to what they consider a gift versus living expenses.

I think u need to talk to Medicaid. You gave Grandmom a home I see no reason she couldn't help with expenses. It goes towards her care.

She should apply for medicaid and see what they say. The worst that they can do is say that it is a gift and delay her qualification for a specific period of time, during which the family will have to pay for the facility.