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State of Connecticut. At what point does the P.E. kick in? For example: $500k home quit claim to children today and the 5 year lookback starrts. No additional $ or assets. I apply for Medicaid in year 6. Do I bypass the P.E. or does it still apply?

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I would think that it is 5 years starting with the month of application. That would likely include part of year 5 even if you applied in December of year 6.
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And if the quit claim is not filed because someone wants lower property taxes until parent dies or goes into home, the quit claim will mean nothing. You have to file it and transfer out of parent name, or it is not valid for Medicaid. Parent benefits of lower property taxes don't apply to children who own. You will need to file gift tax return as it will be above annual exclusion by IRS even if no money due until death. talk to a lawyer experienced in Medicaid in your state and federal filings. You cannot count on six years. One fall or infection and it all collapses. Not do it yourself with property in that range.
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Pls pls keep in mind that the 5 yr from date of application look-back is not set in stone. Medicaid laws since the 1990's allow for up to a 10 year look back. 5 yrs is the federal guideline as per DRA / Deficit Reduction Act of 2005, a Bush43 era law. DRA provided a framework for uniformity for LTC medicaid. But the states - as each administers it's Medicaid program - can tweak their regulations beyond the "federal".

If the property is 500k, it could well be that it is over the limit allowed by medicaid as an non-exempt asset. Most states have 500k - 550k as maximum allowed & usually is based upon assessor value. If your property is over the amount, Medicaid is off the table for you as an option.

Really you need to clearly speak with a NAELA level elder law atty to see what options may or maynot be possible. It's too much $$$ to be a DIY.
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MARIEOC, there is a huge draw back when one quit-claims a deed over to the children, especially on expensive homes. If the deed is changed to your children's name, when it comes time to sell the house, the basis used for figuring out Capital Gain Taxes will be on how much you paid for the house. Your children could face a hefty Capital Gain Tax. More so if the property is deemed an "investment property" if the house isn't your children's main residence.

If the children inherit the house, with just your name on the deed, the the basis used for Capital Gain Taxes upon selling the house, the basis will be what the house is worth on the day your children inherit the house.

With such an expensive house, depending on the equity on the house, your Mom should use that equity to pay her own way should she need a higher level of care down the road. Otherwise, the taxpayers would be paying for her care.
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