The short answer is, yes. It’s your money. But, what if you will need Florida Medicaid in the future, or perhaps you need Medicaid right now? Here is what you should consider before “Gifting” any monies to your children and/or grandchildren.

Beware of the Florida Medicaid Look-Back Period Work

One area that causes a lot of confusion with regard to Florida Medicaid is the look-back period. Medicaid, unlike Medicare, is a means-based program, which means that you are only eligible for it if you have very few assets. Well there is the confusion. If I need to get rid of my assets now to qualify for Florida Medicaid, then why not “gift” them to my family?…. Well, the government does not want you to transfer all your assets on Monday in order to qualify for Medicaid on Tuesday, so it has imposed a penalty on people who transfer assets without receiving fair value in return.

In short, a person applying for Medicaid in Florida is required to disclose all financial transactions he or she was involved in during the five years before the Medicaid application. This five-year period is known as the "look-back period." The state Medicaid agency then determines whether the Medicaid applicant transferred any assets for less than fair market value during this period. Any transfer can be scrutinized, no matter how small. There is no exception for charitable giving or gifts to grandchildren.

However, there are ways to transfer assets without triggering a period of Medicaid ineligibility even if the transfers occurred during the look-back period. Consult with Legally Remote, PLLC to find out if there are any steps you can take to prevent incurring a penalty.