Shannon Pawley, The Estate & Asset Protection Law Firm Owner helps readers understand the penalties, strategies and long-term care planning required to qualify for Medicaid, especially when wanting to gift to children.

DECATUR, GA, September 19, 2025: Shannon Pawley, Owner of The Estate & Asset Protection Law Firm, has posted a new article on the law firm’s website entitled “Understanding Medicaid’s Rules on Gifting – Especially to Children,” in which Ms. Pawley emphasizes the importance of understanding and early planning.

Pawley states, “When planning for long-term health care, especially when Medicaid may be involved, understanding the rules around gifting assets—particularly to children—is crucial.” She continues, “Gifting to children is often part of a legitimate estate planning strategy, but when Medicaid eligibility is a concern, the rules become complex and unforgiving.”

According to Pawley, “Many families attempt to transfer assets to their children to protect their assets from being consumed by nursing home costs. However, Medicaid has strict rules about such transfers, and improper planning can result in serious penalties.”

“First,” says Pawley, “it’s important to understand what Medicaid is and what it is not.” She emphasizes that, “Medicaid is not part of Medicare.” She adds, “Everyone over 65 years of age is entitled to receive Medicare.” Pawley continues, “Medicaid, on the other hand, is a needs-based program that provides healthcare coverage for low-income individuals. That coverage includes long-term care.” Pawley notes, “To qualify for Medicaid, applicants must meet strict asset and income limits. In most states, a single person must have less than $2,000 in countable assets to qualify. The limits are slightly higher when spouses apply for Medicaid at the same time.”

Pawley points out, “Medicaid imposes a “look-back period”—typically 60 months (5 years) from the date of application, specifically to prevent people from giving away assets just to qualify for long-term care coverage.”  And, she states, “Any gifts or asset transfers made during this time are scrutinized. If such a transfer is found to have been made for less than fair market value, Medicaid will impose a penalty period during which the applicant is ineligible for benefits, even if they are otherwise financially qualified.”

The entire article can be read here: Understanding Medicaid’s Rules on Gifting – Especially to Children

About The Estate & Asset Protection Law Firm

The Estate & Asset Protection Law Firm was established to serve the legal needs of retiring citizens. The Firm focuses its entire practice on providing strategies to protect independence, privacy, assets and taxes from the government. Shannon Pawley has grown her law practice by providing excellent customer satisfaction with personalized wealth protection plans.

About Shannon M. Pawley, J.D., LL.M

Shannon is the Owner and CEO of The Estate & Asset Protection Law Firm. Originally from the Tidewater area of Virginia, she grew up in a close-knit family with a strong tradition of military service. She learned early on the importance of integrity, hard work, and giving back to her community. Her upbringing shaped her desire to make a positive impact and instilled a deep sense of responsibility to ensure that every individual is treated with respect and care.

Her passion for serving others took root during her junior year of high school, when she served as a U.S. House of Representatives Page during the 101st Congressional Session in Washington, D.C. This life-changing experience opened her eyes to the power of diverse perspectives and the importance of advocating for those whose voices are often unheard. Inspired by the experience, Shannon decided to pursue a career in law, dedicated to guiding others through life’s most challenging moments.

Shannon’s educational journey led her to North Carolina Wesleyan College, where she earned her undergraduate degree, followed by a Juris Doctor from Michigan State University College of Law. She then specialized further, obtaining an LL.M. in Taxation from Wayne State University. Licensed to practice in both Michigan and Georgia, Shannon is also a VA Accredited Attorney, making her a formidable advocate for her clients.

Throughout her career, Shannon has been a fierce champion for clients from all walks of life, representing everyone from international corporations to single parents. She has always been driven by a profound belief that everyone deserves to have their rights and wishes honored, especially when they are most vulnerable. Whether advocating in the courtroom or guiding families through complex legal decisions, Shannon’s mission is clear: to protect the dignity and independence of every client she serves.

Her passion for advocacy goes beyond legal representation—it’s about ensuring that people’s voices are heard, even when they may not be able to speak for themselves. Shannon is deeply committed to helping her clients age with dignity, grace, and independence, working tirelessly to prepare them and their families for the complexities of aging. Her work is more than a profession; it is a calling to serve, empower, and uplift every individual and family she has the privilege to represent.