Don't be too quick to take money from Grandma

[susgeek]

<p>Care needs to be taken when money is given away, should the grandparent require nursing home care to be covered by Medicaid within 5 years.</p>

<p>[Federal</a> Medicaid Lookback Rules | eHow.com](<a href=“http://www.ehow.com/list_6068531_federal-medicaid-lookback-rules.html]Federal”>http://www.ehow.com/list_6068531_federal-medicaid-lookback-rules.html)</p>

<p>Grandparents need to be very careful with giving money to grandchildren like this. Just like parents need to consider retirement savings, grandparents need to consider potential nursing needs.</p>

[megdog]

<p>However, at least in our state, if the grandparents have a regular pattern of giving gifts to their children or grandchildren, it won’t be considered divestment for Medicaid purposes.</p>

[susgeek]

<p>One needs to be very clear on their state laws. </p>

<p>We look out for an elderly man (now age 92) who has no children. He had a lot of savings (relatively speaking), which he ran down to almost nothing in 2 1/2 years of specialized care. He now has to apply for Medicaid and everything he has spent and donated over the past five years is being scrutinized. </p>

<p>There are a couple active threads about grandparents helping with college tuition right now. The families involved wouldn’t want a college kid to have to pay Medicaid back if he or she receives a gift from grandma for tuition.</p>

[susgeek]

<p>[Grandparents</a> FAQs on 529s - College Savings for grandchildren](<a href=“http://www.savingforcollege.com/grandparents/answer.php?grandparent_faq_id=8]Grandparents”>Grandparents Faqs on 529s - College Savings for Grandchildren)</p>

<p>

The state Medicaid agencies will generally treat your 529 accounts as “countable” assets when testing for Medicaid eligibility. Because 529 plans permit you to take the money back, those funds will be considered available to pay for your nursing home expenses and other medical expenses. If you are concerned about maximizing Medicaid eligibility you should discuss with your attorney your desire to use 529 plans. You may wish to make someone else the owner of your 529 accounts. If you establish the 529 accounts under your own name, and later transfer ownership of the account to someone else (or even use the account to pay for college expenses), your Medicaid eligibility may be restricted by the “look-back” rules which cover transfers up to 36 months or 60 months prior to application for Medicaid.

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[bchan1]

<p>Good point susgeek - definitely something to consider!</p>

[notrichenough]

<p>What if Grandma co-signs a loan and then pays it off?</p>