Re: Medi-Cal clock

From: <MsProf2U@aol.com>
Subject: Re: Medi-Cal clock
Date: Fri, 3 Jul 1998 12:29:19 EDT

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<<My 87 year old father lives with me.  I am
his only child....We recently purchased a
house jointly in which we reside....

1.  When we transferred all of my father's funds 
in to joint checking and investment accounts,
does this start the Medi-Cal clock ticking on the 3 year period
re gift transfers?  If so, since it is a joint account, do
all, or only 1/2, of the funds qualify as a gift?

Do I need a letter from my father indicating that it is a gift?
Would it be better to remove his name entirely 
from the accounts?

2.  We recently purchased a house that we own as joint tennants.
A non-specialist attorney I spoke to 
indicated that there was some case law that set a precedent
such that if the son/daughter of the Medi-Cal recipient is living in the
recipient's house, the government would not force the sale of the house
to recover Medi-Cal long term care costs.
I'm not sure how joint tennancy would affect this, or
if the child must be a minor....>>

I suggest you talk to a specialist lawyer. There are real strict requirements
now to spend down one's money before receiving welfare. Holding $200K jointly
with a family member doesn't qualify as having spent money down, as it is
still accessible to the would-be welfare recipient. Furthermore, only $10K
year can be transferred without incurring gift taxes. Transferring (basically,
"hiding") assets in entirety to receive welfare is fraud, with commensurate
penalties. Be careful! 



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