Legal Question in Wills and Trusts in Illinois
$10,000 gifting
My mother is in a nursing home. I have her power of attorney and am selling her home to pay for her nursing home care. After these funds are depleted we will apply for medicaid to pay for her continued stay. Before this happens can I gift her children $10,000 each, or will this be subject to a 3 or 5 year rule?
1 Answer from Attorneys
Re: $10,000 gifting
It sounds like you have been doing your homework if you are asking about the 3 or 5 year rule.
The answer to your question depends on the amount that your mother is being charged for the nursing home, and how much the home will sell for.
Medicaid laws say that you must have on hand at least 3 years worth of your mother's expenses prior to using the funds for any other purpose.
If you have more than these funds, then you may have the potential to gift some money. If not, you don't.
This answer does not constitute legal advice. Please consult with an attorney who can review yours and your mother's situation carefully, and give you appropriate advise based on all of the facts. The cost of this evaluation will be well worth it.
Good luck to you.
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