The Deficit Reduction Act (DRA) of 2006 established a 60-month "look back" period during which asset transfers are generally penalized if the transfer was done for the purpose of qualifying for Medicaid. Medicaid is administered at the state level so your mother's state may have some variation in the rules. An example: Let's say that during the "look back" period your mother transferred assets to you worth $100,000. Let's further say that the average cost of assisted living care in her state is $5,000. Then once she spends-down her cash to the Medicaid threshold, there'd be still 20 months that she'd be ineligible for Medicaid ($100,000/$5,000 = 20 months). And presumably you'd have to somehow cover that from the assets your mother would have transferred to you. There are some exceptions and here's a helpful article on the topic: Medicaid's Asset Transfer Rules. Be sure to consult an elder law or estate planning attorney for any specific legal advice your mother may need on this matter. I hope that helps.
It's better than nothing but she may be able to establish a funeral expense trust that would not affect her Medicaid eligibility. Depending on her state, there are limits as to what she can do. Find a well-versed life insurance agent or Elder Law Attorney in your state for more help.
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