My 90 yr old father is a WW2 vet who lives at home with my 87 yr old mother. He now needs 24/7 care. Their monthly income is $3850 and their medical expenses are $4855. So they are going in the hole $995 on medical alone, not to mention normal living expenses. They have about $151,000 in assets, but the vast majority is in IRA's (140K). We've been told we need to reduce their assets to $80K by gifting money to children (they have 7). But that would mean a HUGE tax burden, since we'd have to withdraw out of their IRA. So my questions: 1. Would he qualify as his assets are now 2. If we apply and he gets denied, then can we reduce the assets and reapply? 3. If we re-apply, is the effective date the date of the first or second application? Thanks for any help!