The “look-back” period for gifts has been increased from three years to five years.
On February 8, President Bush signed legislation that makes radical changes in the Medicaid eligibility rules. One such change has to do with what is referred to as the “look-back” period. The look-back period is the number of years prior to the date of a Medicaid application with respect to which gifts must be disclosed. Prior to February 8, the look-back period had been three years for all gifts, except gifts to a trust. The new law increases the look-back period to five years for all gifts. This is a significant change in the law!
Although the change in the look-back period and other changes effected by the law make asset protection strategies for Medicaid planning more complex, there still are many creative ways to protect all or some of a family’s assets if a loved one faces the prospect of needing long term care.