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submitted by /u/Prestigious_Tree2102
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Please Help Me Understand Medicaid 5 Year Look Back Period!
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This year in NJ my mom will put her house (worth about $500K) in a trust with myself and my siblings as beneficiaries. She will go into a high-end assisted living facility (about $10K a month) which she can afford for about 3 years before her money runs out and she will apply to Medicaid. We understand the home will be subject to the 5 year look back, but I truly don't understand the calculation of what exactly the penalty would be. It's $13K a month based on what? With the money and timeline I shared, how much would we expect to pay with this penalty?
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