Gifting a Vehicle Impact on Medicaid Eligibility

Yes, it can impact your mom’s Medicaid eligibility, as Medicaid has a 60-month Look-Back Period. This is a period that immediately precedes the date of one’s long-term care Medicaid application. During which, all past asset transfers are scrutinized. If it is found that a Medicaid applicant has gifted assets or sold them for less than they are worth, it is a violation of the Look-Back Period. Violating this rule results in a penalty of Medicaid ineligibility. The amount of time that one is ineligible for Medicaid is based on the value of the assets that were gifted or sold for less than they are worth and the average cost of private pay nursing home care in one’s state. The “look back” is intended to prevent applicants from giving away their assets in order to meet Medicaid’s asset limit.

Going back to your mom, let’s say she lives in Florida and applies for Medicaid in August of 2024. Medicaid will “look back” on all past asset transfers from August of 2024 through August of 2019. If during this timeframe, she has gifted you her car, it is a violation of the Look-Back Rule. Therefore, she will be penalized with a period of Medicaid ineligibility. That said, if your mom were to give you her car prior to the Look-Back Period (July of 2019 or earlier), it would not impact her Medicaid eligibility. This is because it would not violate the Look-Back Period.