If donor gifted $10000 and then 2 years later goes into nursing home. Will or can the state ask for that money back from the recipient?s

[abctax55 · Accepted solution]

That's NOT an income tax question....and the answer will vary from State to State.

I suggest asking an attorney.

[Marc-TaxMan]

Not in Cal.  To overly-simplify the rules in Cal, there is a monthly disqualification period from the date of the gift.  That period is $Gift/$8,000.  So that $10,000 gift is a 1.25 month penalty period on the Donor, long expired.

[TaxGuyBill]

If the donor expects Medicaid to pay for the nursing home, Medicaid generally has a 5 year look back period at gifts, which will AFFECT how much Medicaid will pay for the nursing home.

That may not necessarily mean that Medicaid will pay $10,000 less, but a good Elder Attorney in your State would be able to let you know the details about how the gift would "affect" the payment.

[IRonMaN]

Sounds like a definite maybe or maybe not :wink:

[mojocpa]

Or the "It depends" theory

[Accountant-Man]

They teach "it depends" and "maybe" in law school; otherwise, how else would attorneys be able to bill so much? If you always give definitive yes or no answers then your time is limited. "It depends" takes time to research, review and describe. Therefore higher bills.