I thought you could gift a certain amount each year without penalty?
It is important that you not confuse tax law with Medicaid law. While it is true that in 2014, you can gift $14,000 per person without being required to file a federal gift tax return (IRS Form 709), this rule has no bearing on Medicaid. That said, HHSC will not impose a transfer penalty for gifts totaling $200 or less per month. Once application is made for Medicaid services, gifts to family, charities and church should not exceed $200. This includes birthdays and holidays.
Other Frequently Asked Questions
- Can a family member be paid for services provided to the Medicaid applicant?
- Can I gift or transfer assets for less than fair value and receive Medicaid nursing home benefits?
- Does Medicare cover nursing home care?
- How is medical necessity determined for Medicaid nursing home care?
- How is the Medicaid applicant’s home protected against the Medicaid Estate Recovery Program (MERP)?
- How much is the Medicaid copayment to the nursing home?
- I thought you could gift a certain amount each year without penalty?
- What are some strategies to getting under the Medicaid resource limit?
- What are the basic eligibility requirements for long-term care Medicaid in Texas?
- What do Medicaid nursing home benefits cover?
- What if medical necessity is denied?
- What is a Medicaid transfer penalty and how is the penalty calculated?
- What is a Qualified Income Trust (QIT)?
- What resources are excluded for purposes of determining Medicaid eligibility?