How much money are you allowed to gift to each child, per year? And, does it need to be paid back?

Anyone can give another $13,000 with no tax consequences. If more than $13,000 is given, a gift tax return must be filed. There still will be no tax unless the person has given away more than the exemption amount, which at the current time is $1,000,000.00. For Medicaid qualification, any amounts given away within five years before the application will create a penalty period in which Medicaid will not pay unless the amounts are fully paid back. Partial payments are not sufficient. The money would need to be paid back by the person who received the gift, but it is not a problem if someone helps them out to pay it. Your mother should probably visit an attorney who can give her the necessary information about the specific medicaid rules for Ohio. Be sure that the attorney is well experienced in doing Medicaid planning, This is general information not intended as legal advice. Geraldine Brown is licensed in Michigan.

If your mother was to go into a nursing home within the next 5 years and needed to qualify for Medicaid then she would be ineligible for approximately 4 months (using today's rates). A family member would need to provide for her care during that time. Your mother should discuss this idea with an elder law attorney before she makes the gifts.