Holocaust Reparations and Medicaid

Florida imposes a presumes that repara-

variety of complicated tions monies are spent
rules to determine last, and ordinary in-
whether a resident come and investment
qualifies for long-term income spent first. For
care Medicaid benefits. example, I had a recent
Income and assets must case where a client, a
not exceed certain survivor, needed long-
amounts. Uncompen- term nursing care. She
sated transfers of assets and her late husband
during the “look-back” had both been receiving
period are examined, reparations for decades,
and penalty periods of Joseph S. Karp, but never kept those
ineligibility may be C.E.L.A. monies segregated.
imposed. I have written many times With some research, we were able to
about these rules. But as South document that she and her spouse
Florida is home to many Holocaust had received a total of $500,000 in
survivors, I now want to discuss Holo- reparations. In the past 3 years—the
caust reparations with respect to lookback period—they had given
Medicaid eligibility. their daughter $300,000. Based on
As is entirely appropriate, Holo- the presumption that Holocaust
caust reparation monies—from the funds are the last spent, and since
perspective of both income and the couple had not done any signif-
asset—receive special consideration. icant gifting prior to the three year
Medicaid recipients generally must lookback, Medicaid concluded that
use a portion of their income to help the gift represented reparation

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foot the nursing home bill. Howev- monies. Thus, the gift was deemed
er, Holocaust reparations are
exempt from this require- Listen to Joe Karp and Anita Finley on
ment. Moreover, reparations Saturday, October 30 from 7:30-8:00 AM

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that a Medicaid recipient has on WSBR 740AM and on the
retained and are identifiable Internet at www.wsbrradio.com.
are considered an exempt
asset for Medicaid purposes and not exempt, nothwithstanding the usual
included in the state’s $2,000 asset transfer rules and penalty periods. I
limit. With regard to transfers of have been advised that my client will
Holocaust funds, these too receive be eligible for Medicaid benefits.
special status. Transfers made during This is just one example of why it
the lookback period are not subject is essential that Medicaid planning
to the penalties normally incurred be done with an expert, certified
by transferring other, non-exempt elder law attorney.
assets. Joseph S. Karp is a nationally certi-
I have many Holocaust survivors fied and Florida Bar-certified elder law
among my clients. In my experience, attorney (C.E.L.A.) specializing in the
practice of Trusts, Estates and Elder Law.
none has ever kept reparation in- His offices are located at 2500
come segregated from other income Quantum Lakes Drive, Boynton Beach
and assets. This naturally begs the (561) 752-4550; 2875 PGA Blvd., Palm
question: If one cannot specifically Beach Gardens (561) 625-1100; and
distinguish reparations income and 1100 SW St. Lucie W. Blvd., Port
assets from other assets and income, St. Lucie (772) 343-8411.
how can they be given special status Toll-free from anywhere: 800-893-
9911. E-mail: KLF@Karplaw.com or
for Medicaid purposes?
website www.karplaw.com.
Once again, the law provides Read The Florida Elder Law and
favorable treatment to Holocaust Estate Planning Blog at
survivors in this situation. Medicaid www.karplaw.blogspot.com.