Do You Have a Child Receiving Social Security Disability (SSDI)?
Most people who come into my office are aware of the “5-Year Look-Back Rule”, which penalizes a person who applies for Medicaid if he or she has given away assets within the past 5 years. It is an important concept for all seniors and children to understand. However, there are multiple exceptions to the Look-Back Rule that a knowledgeable elder law attorney can assist a parent in using to protect assets upon entry into a skilled nursing home. One such exception applies if the person applying for Medicaid has a child who receives Social Security Disability Insurance.
There is a relatively blanket exception to the general 5-Year Look-Back Rule that applies to transfers made to a disabled child. The result is that a parent needing skilled nursing home care may generally make unlimited gifts to a disabled child without incurring any Medicaid penalty. Such a strategy must only be done under the advice of an elder law attorney, however, since there important implications for both the parent as well as the child, who may be receiving other means-tested benefits which such gifts can negatively affect.
If you or a parent is entering a nursing home and has a child receiving SSDI, it is important to contact an elder law attorney right away to provide advice on how to navigate these potentially beneficial rules.