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You can gift now 14,000 (I think) to anyone each year without tax penalty. Maybe 10K when you received it. So, by January 2, you can give her back 28K without tax implications. Taxes on 2K, take it. Talk with Elder Law attorney on how is best to do this.
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Panda, you posted this on my personal message board, but I'm going to add it here, to help you get good advice.

"I know I can give back the 30000 that’s called curing the penalty but I got it in three 10000 installments with no taxes but now I have to give it all back at once since it’s over 14000 will there be taxes?"

Panda, I'm not knowledgeable enough about this topic to give you good advice. It seems that I did clarify your meaning, though, with my previous comment. Hopefully others can give you appropriate input.
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Please, please do not blithely do this without dealing with Medicaid first!!
It’s a catch 22 if you do this as Otherwise Wife gives mom 30k & it appears to be a gift which is “income” the month it gets deposited and then an asset afterwards. You need to be sure it counts towards the transfer penalty. Which means mom applies for LTC Medicaid and she / you go through the process.

Why? Cause transfer is not exactly a simple 10k in = 10k out.
The transfer penalty is an basically an equation based on whatever moms state pays the NH as it’s medicaid daily room&board reinbursement rate and penalty will be # of days ineligible in which someone will need to private pay for moms stay in the NH. That 30k is what you all use to pay NH and it could actually cost more than 30k....(more below)

The math is: amount gifted divided by reinbursement day rate
Avg daily R&B is $ 170. BUT some states are lower & some much, much higher. Like for my mom the R&B was about $ 160 a day. So 30k = 188 days someone would need to pay NH to get beyond transfer penalty period. BUT for a mom in $250 day state, would be 120 days. R&B day rate mucho important as the penalty is # of days ineligible. comprende?

Now why it could cost more than 30k, is that the NH doesn’t necessarily have to accept mom on the lower daily Medicaid rate. NH can bill at higher private pay rate. Often private pay rate is double Medicaid R&B. Kinda depends on market forces where you all live. If you know a penalty will surface, my suggestion is...... for you all to negotiate in advance with the NH as to what rate will be privately paid for the transfer penalty period. NH is more than likely going to make you & your bride sign off on a contact to have mom reside at the NH; you will be legally financially responsible; NH could ask for a refundable deposit as well. That’s why the costs could exceed 30k...... sigh.... really whomever is better at hard ball shopping should take the lead in dealing with NH. The NH could also decline from accepting mil as “Medicaid Pending” so if there is a gap of time from the last day of transfer penalty period to Medicaid processing her application and making her eligible till payments start to flow to NH, that period of time could need to be private pay as well (altogether you should be reinbursed for any double pay months once medicaid retros payments). One bright spot is that as mil is private pay, she can use her SS income to pay towards her stay! 

Transfer penalty is not simple. If it’s just $ that’s the penalty, it can - imo - be a DiY, if your a pit-bullie for details and negotiating. Otherwise I’d leave it to an elder law atty to work through it. If the penalty involves property or other assets, those need an atty from the get-go imo.

If your top pick NH won’t negotiate, find another NH. Eventually she will be fully qualfied for Medicaid and you can move her once eligible to the top choice one or another NH as long as new place has an open Medicaid bed and they can provide the level of care you MIL needs. I moved my mom within her first year & couple of mos after she cleared Medicaid to another NH. With a bit of planning, it was pretty seamless & minimal drama.
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Regift back to the mom, so that amount will be used/paid for her care, then she can qualify for Medicaid without penalty...? Is that what you mean?
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Regift?
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