Making gifts as a planning strategy still works, but has new potential consequences.

Making gifts as a planning strategy still works, but has new potential consequences.

Making gifts of assets to children on a monthly basis has been a relatively conservative and well recognized asset protection strategy. In 2005, the Connecticut legislature decided that in particular circumstances a transfer of assets as a gift creates a debt in favor of the State by the recipient of the gift. The amount of the debt can be no more than the amount gifted or the amount of Medicaid assistance eventually paid by the State on behalf of the person who made the gift. There also are pending federal law changes that will have a substantial impact on gifting as a Medicaid planning strategy. If you have implemented a Medicaid planning strategy that incorporates gifts, it is advisable to review it.

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