I believe the term is “Preferential Transfer” and the government can go back on your heirs for transfers to them before you die, if you die within a certain period of time after the transfer. It used to be three years, but it may have been extended to five or seven because of 0bamacare.
As you stated, long before you retire, make sure you have your ducks in a row with a competent financial advisor. The main assets most Americans have are their homes and their 401 retirement savings. Both need to be sheltered by astute estate planning. And there are ways of doing this.
The biggest rip-off is the “retirement community” or “assisted living community.” Basically, they are cruise ships that never leave their dock. And they carry huge liens on your estate; they are designed to take 100% of any inheritance you would have considered leaving for your kids. Their lobbyists are quite effective, too. In many states, there is legislation limiting the number of assisted living communities to drive up the costs, and they stand second in line behind the funeral home and ahead of the government when it comes to taking your estate.
Thank you. Yes, it likely has moved to 5 years. I ran into the 3 year lookback when my mom had to go to a nursing home. They let me keep $6k between my brother and I and funeral expenses that we made prepaid arrangements for. Her costs exceeded 6k per month here in Pa.
Believe it or not, I DID consult and eldercare attorney well before it got so bad she had to be moved to a nursing home...and learned nothing of this from them. She passed in 2006.