Many of my elder law clients in northern Michigan have questions about the Medicaid look-back period and penalties for gifting. The first thing to know is that Medicaid planning to protect assets can be done at any time, even during the look-back period, or after a client is in a nursing home. With that initial piece of information in hand, we can proceed to an explanation of the Medicaid system for penalizing gifts. The Michigan Department of Health and Human Services processes applications for Medicaid benefits. DHHS policy directs an eligibility specialist to investigate all gifts, or transfers for less than fair market value, that an applicant or his spouse made within five years of the applicant being in a nursing home and otherwise being eligible for Medicaid. Let's unpack that a little bit. First, there are two thresholds to cross before a gift penalty begins to run. The applicant must be in long-term care and eligible for Medicaid based on his current assets. Wha