Thinking of gifting money to your kids so you can qualify for Medicaid? Read This First!

You can absolutely give your kids $19,000 a year but if you think you might need Medicaid to cover long-term care within the next five years, that gift could come at a cost.

Here’s why: The IRS gift tax rule (which allows you to give $19,000 tax-free in 2025) is not the same as Medicaid’s rules. Medicaid has a 5-year “lookback” period. Any gifts made during that time—even if they’re under the IRS exemption—can trigger a penalty and delay your eligibility for nursing home coverage.

The bottom line? Generosity is good, but timing is critical. If you’re considering Medicaid in the future, it’s important to plan gifts strategically.  Schedule your strategy session here.