This series highlights the eligibility rules for Maine Medicaid (MaineCare) nursing home benefits and dispels certain myths the families that work with our office often hear.
Myth 10: I Can Only Give Away $10,000 Per Year Under Medicaid Rules.
The Truth: In a given year, there is a limit on the amount of money that an individual can gift to one person without triggering a gift tax. This figure is known as the “annual exclusion amount,” and it is currently $15,000. This concept is important for minimizing estate and gift tax, but it has no relevance in planning for Medicaid eligibility. In 2019, the Maine estate tax threshold applies only to decedents whose taxable estates total more than $5.7 million in assets and the federal estate tax threshold applies to decedents whose taxable estates total more than $11.4 million in assets. People who are concerned about estate and gift tax law rarely need to worry about Medicaid planning.Rachel Trafton, Esq