By skyforbes So it appears that Medi-Cal is reinstating its asset limit to 130,000 next year. Currently, I exceed this.
I have schizoaffective disorder, so I was hoping I could just throw the excess in an ABLE account, but I learned that I can only put $19,000 in a year. That's not currently enough to get me under the limit. Further, I can't open an ABLE account until the start of next year when they up the age limit from 26 to 46.
So I was trying to figure out how to lose some money and asked my mom. She said that gifts that are $19,000 or less aren't taxable events. However, there is a medicaid 5 year rule where they look back 5 years for gifts. The thing is, it sounds like that's mostly related to long-term care, which I don't need. Does it still apply to me?
What are some legal ways of dealing with this? Someone suggested buying a car, but I don't want an expensive car. Further, the main reason I exceed the limit is because of cryptocurrency. It changes value all the time. There is no telling if it skyrockets or if it goes to 0. I can't get out of it because that will mean my income will exceed medi-cal's limits. I'm stuck with it.
Thanks for any input or insight.