"My mother-in-law has been told that even prior to entering a long term care facility in Michigan if she gives a monetary gift to her children that the facility has the right to have the gift turned over to them. Is this correct?"

Answer:  Gifts to children will not be required to be turned over to the nursing home or assisted living facility.  However, gifts may cause a disqualification for Medicaid benefits.  If an application for Medicaid occurs within 60 months of the date of the gifts, then those gifts will cause the Medicaid agency to impose a divestment penalty.  During a period of penalty, your mother-in-law would be unable to receive Medicaid benefits to pay for nursing home or home and community based waiver services (in the assisted living facility).  Gifts made before applying for VA benefits generally will not cause a disqualification as long as no gifts are made to a family member who the claimant lives with.  If your mother-in-law served in the military during wartime or if she is the surviving spouse of a wartime veteran she may be eligible for a VA pension.  Veterans can receive up to $1,644 per month to help pay for the cost of care (including assisted living or nursing home).  A surviving spouse can receive up to $1,056 per month. 

Sanford J. Mall, Esq., CELA
Mall Malisow & Cooney, P.C.
Farmington Hills, Michigan  48334
248-538-1800