To be eligible for Medicaid long-term care (at home, in the community, or in a nursing home), an applicant must have income and assets under a specified amount.
If the applicant’s income or countable assets exceed Medicaid’s financial limits in their state, it is possible to become eligible by “spending down” one’s income or assets to the point where they become financially eligible.
However, there are Medicaid spend down rules about how one can legally spend down their financial resources. One such rule prohibits gifting, and if this rule, or any of the other spend down rules are violated, the applicant will be denied Medicaid.
