What is the 5 Year Look Back Period for Medicaid Planning


Attorney Thomas B. Burton discusses the 5 year Medicaid look back period for gifts and transfers made five years before an applicant applies for Medicaid and discusses what happens when a gift or transfer of assets is made within this 5 year period.


Transcript of Video: What is the 5 Year Look Back Period for Medicaid Planning

Today's question what is the five-year

look-back rule for Medicaid planning if

you've looked into doing Medicaid

planning and perhaps seen in the

literature references to the five-year

look-back rule what this is talking

about is any planning you do must be

done five years ahead of the time when

you need to apply for Medicaid

assistance so for instance let's say you

want to give some property the family

cabin to your children now and get it

out of your name out of your estate if

you were to need to qualify for Medicaid

within five years that would be

considered a divestment and counted

against you what I mean is if you gave

the cabin away today and three years

from now you needed Medicaid assistance

Medicaid would look back five years and

see that you gave away that family cabin

let's say it's worth $150,000 to your

two children they would then apply that

$150,000 gift as a penalty and make you

wait an applicable period the penalty

period calculated according to the amount

of the gift and how long ago you gave it

until you could receive Medicaid

assistance from the state so when you

hear about the five-year look-back rule

for asset transfers it's dealing with

five years before the date you'd submit

your Medicaid application if you're

looking at doing Medicaid planning I

recommend you consult with a qualified

estate planning and Medicaid planning

attorney to go through all your options

before you would consider and implement

any of this type of planning it's very

fact-intensive and it's best to involve

the services of a knowledgeable lawyer

to make sure you do it correctly and not

do something you would later regret

great question and thanks for asking.

© 2018 Law Office of Thomas B. Burton. All Rights Reserved.

Transcript and captions provided for ease of access for the hearing impaired.

For questions about this topic, or to suggest a topic for a future blog post, please contact my office.

#Medicaid #MedicaidPlanning #MedicaidAssistance #5YearLookBackPeriod #IrrevocableTrust #IrrevocableMedicaidTrust #EstatePlanning #WisconsinAttorney #WisconsinLaw

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