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Should I Put My Child’s Name on My House?
Adding your child’s name to your house may seem like an easy way to avoid probate, but it can create unexpected legal and financial consequences. Depending on how the deed is prepared, you could unintentionally expose your home to your child’s creditors, divorce, or financial difficulties. You may also trigger unfavorable tax consequences or interfere…
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Community Spouse Medicaid Look-Forward
Wisconsin’s unique Medicaid “look-forward” can impose a divestment penalty on the institutionalized spouse if the community spouse (the spouse at home) gifts or transfers assets for less than fair market value after Medicaid eligibility. This review extends for five years from the day the institutionalized spouse was determined eligible, meaning well-intended transfers—helping adult children, charitable…
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The Gift and Promissory Note
When a loved one needs long-term care, families often fear it is too late to protect anything. In some situations, that is not true. One technique sometimes used in a Medicaid crisis is the gift and promissory note, a coordinated approach that preserves a portion of assets while working toward Medicaid eligibility. In general terms,…
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Understanding the Medicaid Penalty Period
Many families are surprised to learn that divesting assets before applying for Medicaid can create a penalty period—a stretch of time when Medicaid won’t pay for care, even though the person otherwise qualifies. What makes this especially stressful is that the penalty period does not begin when the gift is made—it starts only after a…
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Medicaid Divestments in Plain English
Many people don’t realize that giving away money or property before applying for Medicaid can create problems. A divestment is transferring assets for less than fair market value during the five-year look-back period. This can include gifting cash, deeding farmland or a home to family, adding someone to a title, forgiving a loan, or selling…
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The 5-Year Look-Back in Plain English
Medicaid doesn’t just look at what you own today—it looks back five years. This is called the 5-year look-back. Medicaid reviews financial transactions for the 60 months before an application is filed. Gifts to children, transfers of land, or selling property for less than fair market value can all trigger penalties. If Medicaid finds a…
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Lifetime Gifts: The Joy of Giving Now
If you have the financial means, consider giving your children some of their inheritance now. The benefit is twofold. First, you get to see the direct impact of your generosity, whether it is helping a child buy their first home, start a new business, or pay for your grandchildren’s college education. Second, depending on the…
Category: Gifting
Eckert & Krautkramer, LLC
Protecting Assets, Preserving Dignity, Ensuring Peace of Mind
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