If Your Parents Can’t Pay Their Bills, You May Have To

[IphengeniaBlumgarten]

42. Yes, I think that was the motivation for such laws --

It was a popular strategy for parents with assets -- but not enough assets to purchase long term care insurance -- to transfer assets to their children, either by gift, or favorable sale, prior to needing nursing home care or expensive medical treatment. Then they did not have to "spend down" their assets before becoming eligible for Medicaid.

About 20 or 30 years ago, maybe more, this practice was widespread enough to inspire these laws so that assets that had been hidden in this way could be clawed back to help pay the medical and other care that these parents had received.

It may be that the laws intended to correct this problem have gone too far. But let's not blame ALEC for their existence.

In Louisiana (my state), I notice that there has to be some hearing before the children are held responsible for any debts. Presumably this would be an opportunity to examine whether assets had been transferred or not.

Perhaps a lawyer could weigh in on this?