I understand the 5 year look back rule on gifted money, but does anybody know how Medicaid views gifted money given when the person who received it has passed away? Do other family members have to step up and pay the money back in order for their loved one to be eligible for Medicaid?
I don't think Medicaid goes after family for money. It's not up to them to make sure family can get Medicaid. Family is told what they need to do and it's up to them to do it. Just like if a lien is put on a house after death, it's up to family to sell the house, Medicaid does not take the house. It could sit there and rot for all they care. But if sold, they get their money.
I agree though, that you may want to consult with an Elder Lawyer who is versed in Medicaid.
I wish you good luck.