Category Archives: Medicaid

Good Gifts Gone Bad – The Hidden Dangers of Giving Property to Your Children

I often have clients (or client’s children) who ask me – “can’t I just give my property to my child?” Or who say “My mom wants us to inherit her house, isn’t the easiest way to just have her sign a life estate deed?” Sometimes it’s “I’m allowed to give away $10,000.00 per year, right?” or  “I put my bank account in my son’s name since he is going to be paying my bills for me from now on, that’s ok, right?”  In many cases, it’s not ok.

One of the things you need to be aware of when you are transferring your property is that there may be ramifications beyond just making a nice gift or helping out a child:

  • If you give property to a child, it could be at risk if that child is sued or files for bankruptcy.
  • If you put money in your child’s name that they plan to hold on to for your future use, this could count against them if they need to apply for financial aid for their children or for themselves.
  • If you pass the remainder interest in your home to a child, you will not be entitled to the full proceeds from the sale if the home is sold during your lifetime.  You will only be entitled to the share of the proceeds that are allocated to the life estate, and your children will be entitled to the proceeds that are based on the value of the remainder interest.  This could significantly reduce the amount of money you thought you would receive upon the sale of your home.
  • If you pass the remainder interest in your home to a child, and that child later needs to file bankruptcy they could be forced to sell their share in the family home to satisfy their debts.
  • If you give property to your child, either cash or real estate, that property could be at risk if your child goes through a divorce.
  • If you give your property to a child, you may end up needing it for your care and be unable to access it when you need it.
  • If you give real estate to a child, there may be negative tax consequences for them when the property is sold.
  • If you give the remainder interest in your real estate to more than one child, and they later can’t agree on what to do with the property, one of them may take legal action against the other to force the sale of the home.
  • If you give money or property away and later need to apply for public benefits such as MassHealth, you may be ineligible due to your gifting.

What seems like a relatively simple transaction can be riddled with “traps for the unwary” for both the giver and the recipient.  There are many safe and appropriate ways to make transfers of property to your children while insuring that you, your children and your property are protected.  It is vital that both parties seek legal advice so you can go into the transaction being fully aware of the consequences of the gifts, and the best way to structure the transaction.

Your Help Needed to Support New Legislation to Maintain Finanical Security for Seniors

I am a member of the Public Policy Committee of the Massachusetts Chapter of The National Academy of  Elder Law Attorneys.   Below is some information about recent bills that have been filed by our chapter to help seniors and their families. You can click on the name of the person sponsoring the bill toContinue Reading

Will You Be Responsible to Pay for Your Parent’s Care?

If a parent needs long term care – either at home or in a nursing facility, children may watch as their parent's savings dwindle to pay for the care, which can cost upwards of $5,000 – 10,000.00 per month.  If the parent ends up meeting the eligibility criteria for Medicaid (called MassHealth in Massachusetts), thenContinue Reading

Online MassHealth (Medicaid) Application & Eligibility Regulations

Wondering where to find the MassHealth (Medicaid) Application online?  The Massachusetts Office of Health and Human Services has downloadable copies of the application on their site.  There are several applications and booklets, so make sure you are choosing the correct one for your situation.  The MassHealth eligibility regulations can be found by clicking here.  IfContinue Reading

Setting Up A Burial Account In Massachusetts

Under Medicaid, or MassHealth, regulations, the applicant is allowed to have $1500.00 in a "Burial Account."  However, if you go down to your bank and ask to open a "Burial Account", they may look at your strangely and not know what you mean.  When this happens to my clients, I tell them to go backContinue Reading

Misconceptions about Medicaid

The Patriot Ledger has a blog written by Sue Scheible called A Good Age. Sue writes about various issues affecting the elderly, including caring for her aging father. She recently had a post about some misconceptions about Medicaid/MassHealth.  I commented on the post, and then we spoke by phone.  The result of that conversation isContinue Reading

Information Needed for MassHealth (Medicaid) Application

If you or a loved one find yourselves needing to apply for Medicaid (also called MassHealth) coverage for a nursing home stay, or think you might have to in the future,  you must be prepared for the extensive amount of information required by MassHealth. The following is a list of documentation you will be askedContinue Reading

Medicaid (MassHealth) Eligibility Rules

I have set out below some of the Long Term Care MassHealth Eligibility requirements in Massachusetts. These guidelines apply to people who are over 65 and who are in a nursing home, or will be when they are receiving MassHealth coverage.  Asset Limits The applicant may have $2000.00 in countable assets.  If married, the applicant'sContinue Reading

Medicaid Changes – Part 2

Elder law is not just about Medicaid (MassHealth) planning; very few people actually end up needing long term nursing home care. However, for those who need it, and their spouse left behind in the community, the changes to the Medicaid rules make a big difference in the different strategies used.  I posted about changes toContinue Reading

Changes to Medicaid Law

In the 80’s and 90’s the myth of the “welfare queen” led to punitive and sometimes harmful changes to the welfare rules.  Well, the so-called “welfare queen” has aged, and is now apparently a “millionaire on Medicaid,” leading Congress to pass the Debt Reduction Act which will have potentially devastating effects on middle income eldersContinue Reading