Posted on: 07th Oct, 2010 01:39 pm
I searched and did not find my answer anywhere.
I purchased my grandmother's farm July 2006 for about 2/3 fair market value. She filed a gift tax return for the balance. She held the mortgage on the farm until May 2009 when she released the mortgage, cancelled the note, and filed another gift tax return on that gift. I am moving to North Carolina next month, we have a contract on the farm to close in about 30 days. My grandmother also gave away most of her cash (CD's) to my aunt this year, so she will run out of money around January, 2011. We were told that she will be ineligible for Medicaid for 69 months based on the value of the 3 gifts. We were also told that if she is turned over to state care that they will reclaim each gift.
My Question:
1.) Does the state of KY have authority to reclaim assets from me (the proceeds from the sale of the farm) if I am living in North Carolina?
I had planned to support her at least until the first gift is past the lookback period, but if they can't take the money back across state lines then I could save some money.
I purchased my grandmother's farm July 2006 for about 2/3 fair market value. She filed a gift tax return for the balance. She held the mortgage on the farm until May 2009 when she released the mortgage, cancelled the note, and filed another gift tax return on that gift. I am moving to North Carolina next month, we have a contract on the farm to close in about 30 days. My grandmother also gave away most of her cash (CD's) to my aunt this year, so she will run out of money around January, 2011. We were told that she will be ineligible for Medicaid for 69 months based on the value of the 3 gifts. We were also told that if she is turned over to state care that they will reclaim each gift.
My Question:
1.) Does the state of KY have authority to reclaim assets from me (the proceeds from the sale of the farm) if I am living in North Carolina?
I had planned to support her at least until the first gift is past the lookback period, but if they can't take the money back across state lines then I could save some money.
Hi Guest,
I don't think that the state will reclaim assets from you. Rather your grandmother won't be eligible for the Medicaid benefits for the next 5 years.
Thanks
I don't think that the state will reclaim assets from you. Rather your grandmother won't be eligible for the Medicaid benefits for the next 5 years.
Thanks