Nashville City Paper

Nashville City Paper: "Proposed law could harm charitable giving
By Judith R. Tackett, jtackett@nashvillecitypaper.com
December 29, 2005

Charitable giving by seniors could decrease significantly if the federal budget reconciliation bill passes in Congress in its current form.

More than 80 percent of Tennessee seniors who are members of the AARP donated to charities in 2003.

With a close 51-50 vote decided by Vice President Dick Cheney, the U.S. Senate last week approved the conference agreement on the budget reconciliation bill, which includes provisions that could discourage seniors from donating to charitable organizations.

Under current law, Medicaid includes a provision that penalizes seniors who have transferred assets for less than fair market value within three years of applying for long-term care coverage. That language includes charitable donations seniors made within three years from applying for Medicaid.

The goal is to deter seniors from transferring assets to become eligible for Medicaid."