What Does Medicaid Consider Transfer of Assets for Eligibility Purposes?
A transfer of assets is giving away property for less than it is worth so you can qualify for Medicaid coverage of long-term care services. An asset includes all income, real property, and personal property to which you and your spouse are entitled whether or not you actually receive it. If you transfer your assets, Medicaid may not pay for your nursing home or other long-term care services.
Are There Permissible Asset Transfers?
Certain asset transfers, such as a transfer to a spouse or a disabled or blind child, are not considered disqualifying transfers.
How Far in the Past Will Medicaid Look to See if I Have Made a Transfer?
Medicaid will look at all asset transfers made in the five-year period prior to your Medicaid application. This period is referred to as a "lookback period."
How are Transfers of Assets Penalized in the Medicaid Eligibility Process?
Asset transfers are typically penalized by disqualifying the applicant from becoming eligible for payment for nursing home and other long-term care services for a specified period of time.
Transferring assets may result in your disqualification, and you may not have any resources to pay for long-term care services.
Are There Special Allowances for My Spouse?
If you are married, you may be allowed to provide a monthly allowance to your spouse to ensure that he or she has adequate income, before you are required to contribute to the cost of your own care. Your spouse, however, is not required to contribute any of his or her income to the cost of your care, if you are not living in the same household.