Legal Question in Elder Law in Illinois

Medicaid countable Assets and gifting stocks

Mom is in a nursing home.

Dad is still on his own at home.

They are currently paying the nursing home costs out of pocket but we're anticipating a point in time when Mom will apply for Medicaid.

I realize that a penalty will be paid if Mom and Dad give away their assets in order to qualify for Medicaid. That is, Mom would not eligible for Medicaid by the amount of time that corresponded to what was given away. However I have a specific question on WHEN the cost basis of a stock gift is determined.?

1) If Dad give's me 100 shares of stock valued at a $1 on January 1 2009,

2) The stock increases in value to $2 a share when Mom applies for Medicaid on June 1 2009,

3) What is the countable asset value used at the time of the Medicaid application?

a) $100 [the value on the date of the gift]

b) $200 [the value on the date of Medicaid application]

Thanks in advance.


Asked on 4/04/09, 1:41 pm

1 Answer from Attorneys
Gregory Turza Law Offices of Gregory P Turza

Re: Medicaid countable Assets and gifting stocks

Dad gives you the stock but mom applies for Medicaid? It sounds like you are trying this at home. A little knowledge is dangerous.

Since your mother is not the donor you may be harming her application for benefits with the gift instead of helping regardless of the valuation issue.

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Answered on 4/05/09, 4:16 pm


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