[Dueller]

LOL...you guys crack me up.

Back to the original query. AG, you could transfer the assets over to children. If done above board (i.e., not trying to hide it from Medicaid, gift tax returns filed, etc), you then could wait 36 months and then apply for Medicaid. If you were to place the money/assets in any type of trust, the waiting period is 60 months. During the intervening period, your dad would have to pay for any of his NH care not covered by insurance or Medicare (as opposed to Medicaid.

Typically skilled nursing care runs $6-7K/month. Assumiong he has a $2K/mo SS benefit that would leave $4-5K/month shortfall. So you can see in a 3 year period he could use up $150K+ of his assets transferred to someone else. But, if the house is transferred to a child and then sold you would end up with a big tax on the gain. One solution is to allow him to sell the house then transfer the money....that way there is no tax on his gain. And a gift under the estate exemption would not be taxed (under current law...may change).

Once he has served out that waiting period on transfer of assets, he would possibly qualify for Medicaid (under current law).

DISCLAIMER: The foregoing is offered for purposes of discussion and is not intended as legal, accounting or other professional advice.