Maryland Elder Law and Estate Attorney
The Law Office of William M. Gatesman
With the due date approaching for the filing of an income tax return, some may wonder if the costs paid to an assisted living facility are deductible.
In order to deduct assisted living costs for income tax purposes, an individual needs to obtain a written statement from her doctor which states that:
Medicaid law allows a parent to gift any amount of assets to a disabled son or daughter and still get Medicaid to cover the parent’s long term care in a nursing home. If the child who receives the gift is not disabled as determined by the Social Security Administration, however, then any such gift, if made within five years preceding the date of the Medicaid application, will cause Medicaid ineligibility for the parent who made such gift.
The Medicaid rules state that both outright gifts to a disabled child, and gifts to a trust for the sole benefit of a disabled child are exempt transfers — that is, transfers that do not cause Medicaid ineligibility for the parent who makes the gift.