Hiding Assets. Whats your view?

Jul 29, 2007

  1. arnguy

    arnguy Guru

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    Below are the results of my research on 'hiding assets" as posted on the website Law Office of David L. McGuffey, LLC.

    Isn't it against the rules to give away your assets for the purpose of becoming qualified for Medicaid?
    Yes and No. The most immediate concern is the gifting penalty. You can give away your money, but if you do, then you will be denied Medicaid benefits for a period of time roughly equal to the amount of "nursing home care" you gave away. This is the Medicaid gifting "penalty." If you decide to give away your assets, we will help you do it in a manner than minimizes the penalty. Another thing some people have heard about is the "Granny's Lawyer Goes to Jail" law. To put a stop to perceived Medicaid Planning abuses, Congress made it a crime for a person to transfer assets to qualify for Medicaid. Such a hue and cry arose over the "Granny Goes to Jail" law that Congress amended it in 1997 to make it a crime to advise, for a fee, a person to transfer assets, although it is entirely legal for the person to do so in order to qualify for Medicaid. A federal court in New York enjoined enforcement of this statute that had placed lawyers at risk of criminal prosecution for advising clients about transferring assets in order to qualify for Medicaid. On March 11, 1998, U.S. Attorney General Janet Reno sent a letter to President of the Senate Al Gore and House Speaker Newt Gingrich, in which she indicated that she would not enforce or defend the law because it "plainly is unconstitutional under the First Amendment." Since that time, although the statute remains on the books, it has not been enforced.
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    arnguy, Jul 31, 2007