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Disqualifying gifts for disabled child in Medicaid planning

Submitted by GHorton on Sun, 10/10/2010 - 08:19

My father would like to sell his 2nd home and give the money to our son who has a severe disability. He thinks he might put the money in trust for his grandson. I understand that such a gift within five years of applying for medicaid can disqualify him for eligibility but aren't there some exceptions for disabled children? Thanks.

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Disqualifying gifts for disabled child in Medicaid planning

Submitted by Christine J. Benway on Sun, 10/10/2010 - 11:38.

There are ways of making such a gift within the 5 year look back period to a disabled child without it resulting in disqualification of the donor for Medicaid, or of the donee for benefits for which the donee might apply. One such method is a Special Needs Trust and another is a Pooled Trust. These are complex devices with income tax and estate planning ramifications. In my opinion, you should not attempt to use them without the advice of a qualified professional.

www.christinebenway.com

Editor's Response

Submitted by admin on Sun, 10/10/2010 - 13:14.

I agree with attorney Benway:  Before your dad does anything regarding this plan, he should talk to a Massachusetts elder law attorney.  This is a complicated area of the law, and those interested in such planning must pay close attention to the details.  Follow this link for some general information about one of the options mentioned by attorney Benway, the special needs trust. 

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