Elder Law and Estate Planning Attorney serving clients in Hudson, WI and surrounding communities

Gift Planning and Medicaid…Use Caution!

There are many reasons why we make gifts to our children or loved ones. Whether we’re helping them with college tuition, buying that first home, or assisting with a medical or financial hardship, we’re compelled to take care of our family. As an Estate Planning Attorney I find that many of my clients in their senior years often feel the need to begin gifting their assets to their children or grandchildren. But great care should be taken when making gifts in our later years. Careful planning with an attorney experienced in Estate Planning and Elder Law is necessary to help ensure that your gifting is not jeopardizing your eligibility for the Medicaid program should you ever need assistance with your medical expenses or long-term care needs. When I explain this to my clients, their first response is always to remind me of the annual gift tax exclusion, which allows them to gift a certain sum of money to each child and/or grandchild each year without gift tax consequences. Well, that’s true, but read on. Continue reading →