Gifts, Penalties

Penalty for Gifts is period of Medicaid ineligibility calculated by taking the total value of gifts in prior 5 years and dividing that number by the monthly average cost of nursing home care.


2011 Virginia Average monthly cost of nursing home: 

$6,654 in Northern Virginia

$4,954 elsewhere in state














Any Gifts over IRS Exclusion Reportable                      Maybe Taxable



2011 IRS Annual gift tax exclusion amount is $13,000