‘Tis the Season: Implications of Gifting on ALTCS Eligibility
In our everyday lives, giving to others is a definitely a good thing. During the holiday season, especially, we are often reminded of how important it is to give of our time, talents, and financial resources. Unfortunately, financial generosity may adversely affect financial eligibility for ALTCS.
As with any government program, there are requirements for eligibility and ALTCS is no exception. Along with meeting medical criteria, an individual must also meet certain financial requirements in order to qualify for the program. Part of the financial review involves a five-year look-back period on gifts and transfers from the applicant. Some common gifts that can pose problems include donations to charity or gifts to family members such as money to pay for education or to pay down debt.
Some well-intentioned adult children may transfer their parents’ money into their names in an attempt to help preserve assets. They mistakenly believe that by taking the money out of the parent’s name and “holding” it for them in their own account, that the state will not count the money as asset. This is not a good option. The state could actually penalize this ALTCS applicant according to the amount of money transferred. The more money that was transferred, the longer this applicant will go without full long-term care coverage from the date he or she would otherwise qualify.
Please remember that we are here for free pre-screens to help you determine whether or not you have issues such as these that may threaten ALTCS eligibility. The good news is that, oftentimes, these issues can be corrected.
You can reach us toll-free at 1-800-243-1160 or you can visit our website at www.MyALTCS.com and check your eligibility by using our free Quick Calculator to determine if you may need to seek legal advice before applying for ALTCS.
Happy Holidays from the Elder Law team!