Mr. Goodwin is everything you want in an attorney: professional, honest, thorough, and genuinely caring. He always explains things clearly, so I understood exactly what was happening and what to expect next. His attention to detail and persistence really stood out. Looking back, I feel lucky to have found him. He guided me through the whole process expertly, and I deeply appreciate all his hard work. Would definitely recommend him to anyone needing legal help.
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Using the Gift and Loan to Get Medicaid
Even when someone is about to enter the nursing home, it is still possible to preserve half of their assets while qualifying for Medicaid. One of the last resort tactics we use is the gift and loan technique known as “half and half.”
Here is an example of how it works:
Paula, who has $200,000 in assets, needs to go into a nursing home. She gifts half of it to her daughter and lends her the other half. Medicaid applies a penalty waiting period on the half that she’s gifted, but not on the half that’s a loan. So Paula, who transferred $100,000 to her daughter, will incur a 10 month period during which she will not be able to receive Medicaid and will use the $10,000 per month loan repayments from her daughter to pay for nursing home care. After the penalty period, Paula starts getting Medicaid while her daughter legally keeps $100,000.
It is important to document the loan with a properly executed promissory note with the applicable interest; otherwise, New York will not consider it to be a loan. The Promissory Note will need to be presented during the application process to prove that the transfer was not a gift but a loan. Read more about how a Note Payable can be used to qualify for Medicaid.
It is also important to get an opinion letter from an attorney advising of the legality of any particular Medicaid transfer technique. It would be unwise to attempt this advanced technique without the assistance and support of qualified legal counsel.
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About the Author
Albert Goodwin, Esq. is a licenced New York attorney with over 15 years of courtroom experience. His extensive knowledge and expertise make him well-qualified to write authoritative articles on a wide range of legal topics.
