When a loved one needs long-term care, Medicaid often becomes part of the plan — and as their Power of Attorney, you may be the one applying. It’s a role you can absolutely handle, but there’s one area where good intentions cause real damage: gifting and the look-back period.
What your authority lets you do
A financial Power of Attorney generally lets you apply for benefits like Medicaid on the principal’s behalf — gathering documents, completing the application, and communicating with the agency. That part is squarely within a typical agent’s job.
Where agents get burned: gifting
Medicaid reviews financial history when someone applies for long-term-care coverage — commonly called the look-back period. Transfers and gifts made during that window can delay eligibility. Well-meaning agents sometimes “spend down” or gift money to help qualify, and accidentally cause a penalty instead. Two cautions:
- Many Powers of Attorney don’t grant gifting authority at all — and if yours doesn’t, you generally can’t make gifts. See our guide on gifting and beneficiaries.
- Medicaid planning is genuinely technical and varies by state. This is a moment to get professional advice before moving money.
The safe approach
Apply within your authority, keep meticulous records, and *before* you transfer or gift anything to “help qualify,” talk to an elder-law attorney or benefits specialist. A short consultation can prevent a months-long penalty.
This is exactly the kind of high-stakes, state-specific situation where one-on-one consulting and the POA Caregiver Program help you avoid an expensive misstep. Education, not legal advice — confirm the rules for your state.
_This article is plain-English education, not legal advice. Power of Attorney law varies by state, and reading it does not create an attorney–client relationship. For guidance on your specific situation, talk with a licensed attorney in your state._