Parents want to take care of their children. This is generally true regardless of how old their children are. Even when the Georgia parent is past retirement age and beginning to become worried about Medicaid planning and the possibility of nursing home care being required, the parent will often attempt to find a way to both take care of his/her Medicaid concerns and also make sure that the children receive their anticipated inheritance.
One way that older parents may attempt to protect their children's inheritance is by going ahead and giving the family home to the children. This is often done by using a quit claim deed granting ownership to the children. Unfortunately, there can be several problems with this. In addition to the home now being vulnerable to the children's creditors and the possibility of increased taxes in the long run, this action may prohibit the individual from receiving Medicaid benefits when they are needed most.
Nursing home care is expensive. For the majority of Georgia residents, Medicaid assistance is necessary. However, in order to qualify for Medicaid benefits, individuals must provide documentation related to their finances and ownership interests for the five years preceding the need for such benefits. If the home has been transferred to the children during this five year time period, it is likely that benefits will be withheld until the five year time period has expired.
Medicaid planning is a necessary step for many Georgia residents. There are ways to protect one's assets; however, there are a number of legalities which must be taken into consideration. Rather than attempting to navigate these treacherous legal waters, many find that seeking experienced legal counsel is well worth the investment.