A Gift Ungiven
Your grandfather has told you over and over that he wants you to inherit his vintage motorcycle. But the problem is, he’s receiving long-term care and is on Medicaid. Your uncle has already told you the bike can’t be legally transferred to you without jeopardizing your grandpa’s care benefits or triggering penalties. To make sure the motorcycle ends up in your hands, you need to know how Medicaid treats gifts and look-backs.
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How Medicaid Reviews Asset Transfers
Medicaid has a look-back period, typically of five years, where transfers of assets for less than fair market value are looked at closely. If your grandfather gives you the motorcycle outright, Medicaid could look on that as a gift and penalize him by delaying his eligibility for coverage or charging him for care. This could potentially cause months of lost benefits.
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What Qualifies As A “Gift” Under Medicaid
Giving property like a motorcycle to a family member without getting fair market value in return is generally considered a gift under Medicaid rules. A simple transfer of the title, even if it’s just a promise in conversation, could be flagged in a Medicaid review if it happened within the look-back period. This would have consequences for your grandfather’s eligibility…