Half-a-Loaf Approach to Gifting

by Ira M. Leff, Esq.

November 4, 2009

Charlie is 84 years old and has just entered ABC Nursing Center, which costs $6,022.50 per month (the national average). Charlie's monthly income is $1,800 and he has $125,000 of cash assets. Charlie is a widower and wants to protect some of his assets for his children and grandchildren. What can he do? How about making gifts and protecting 52.92 percent of what he transfers?


Period of ineligibility is $59,800 4,916.55 = 12.17932 months

During 12.17932 months, kids give back (12.17932 x $4,387.50) = $53,436.77

Kids keep $113,000 - 53,436.77 = $59,563.24

Next week I will explain the mechanics of making the transfers, applying for Medicaid and making the transfers back to Charlie.

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