New Hampshre Liability of Gift Recipients
February 16th, 2015 by beasleyferber
The same law we wrote about last week also concerns gifts. If you make a gift within five years of applying for Medicaid and are therefore disqualified from benefits, then the recipient of the gift is liable to the nursing home, at the Medicaid rate, up to the amount of the gift. For example, say you give a child $14,000 and you apply for Medicaid within the next five years. As a result of the gift, your Medicaid eligibility is delayed about six weeks. In this case, your child who received the gift will be personally liable to the nursing home up to the amount of the gift. By then, the child will have undoubtedly spent the gifted money on tuition or other expenses, and will not be able to return it.
We have already seen letters from nursing homes to gift recipients threatening to sue them to collect this money. If you ever make gifts to children (or anyone else) they need to be aware of this new law. Therefore, they should sign a letter making them aware of the law and of their potential responsibility to return it within the following five years.