You are working on wealth planning techniques with an elderly client whose health is beginning to deteriorate. The client will soon be entering a nursing home and knows they will eventually run out of money and qualify for Medicaid coverage. To qualify for Medicaid sooner, the individual would like to artificially impoverish themselves by giving away their money and other assets to their children, which must be done at least five years before applying for benefits. Do you believe this practice is ethical?
Hi,
The practice is unethical according to my perception, as the client is trying to manipulate the circumstance in order to gain the benefits of Medicaid coverage. Also for the client to qualify for the coverage, he had to dispose all the assets before 5 years of applying for the claim. Since his health is already deteriorating it is practically not possible for the client to wait another 5 years.
Hence it is advisable for the client to use the assets and money available on hand, then eventually use the Medicaid coverage benefits, once qualified for the same.
Get Answers For Free
Most questions answered within 1 hours.