Some Common Questions

I’ve added my kids’ names to our bank account. Do they still count?

Yes. The entire amount is counted unless you can prove some or all of the money was contributed by the other person who is on the account. This rule applies to cash assets such as:

• Savings and checking accounts

• Credit unit share and draft accounts

• Certificates of deposit

• U.S. Savings Bonds

Can’t I just Give My Assets Away?

Many people wonder, can’t I give my assets away? The answer is, maybe, but only if it’s done just right. The law has severe penalties for people who simply give away their assets to create Medicaid eligibility (called divestment).  It is not a civil or criminal penalty; the penalty is that Medicaid will not pay for your care for a period of time. For example, every $6,362 (in 2009) given away during the five years prior to a Medicaid application creates a one month period of ineligibility.

So even though the federal Gift Tax laws allow you to give away up to $13,000 per year without gift tax consequences, a gift of that amount would result in a period of ineligibility of two months for Medicaid purposes.

Continue to Division of Assets.