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My mother in law is getting ready to go into the nursing home. She currently has Aetna and Medicare. Once that is exhausted she will go to Medicaid. She is wanting to give her two remaining children financial gifts for their upcoming birthdays (February and June), is there a limited amount that she can give them? We want to ensure we do everything correctly. She is not rich by no means but does have a few thousand dollars after we have prepaid her funeral expenses.

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Justjuls68, sorry timing is not good for financial gifts. You mention Aetna and Medicare. Could it be that Mom-in-law is going into Rehab? If yes, then Aetna and Medicare will pay for Rehab/housing but the time is limited.

Once Mom-in-law goes from Rehab into the Nursing Home, then she will be "self-pay", and the average cost is $10k-15k per month. That a big bite out of savings/investments. Once that runs out, then Medicaid will kick in but the application process needs to start before the self-pay runs out.

Medicaid will look back into Mom-in-law financials to see if she had gifted any money within the past couple of years, in some States they go back 5 years. Any financial gifts given will be subtracted from her care. Note, Medicaid is funded by the taxpayers.
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JoAnn29 Jan 2023
She will be penalized and either someone takes care of her till the penalty is done or they pay for the penalty period.
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Is your MIL going from a hospital to Rehab? If not Medicare and Aetna do not pay for Long-term care.
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The Medicaid application process will definitely be looking for gifts of a few thousand dollars.

What did she give them for their birthdays last year?
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Assets are to be used for care, not for gifts to family. She needs to spend those dollars on care.
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AlvaDeer Jan 2023
I agree.
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