Medicaid Permitted Transfers

While most transfers are penalized with a period of Medicaid ineligibility, certain transfers are exempt from this sanction. Even after entering a nursing home, you may transfer any asset to the following without having to wait out a period of Medicaid ineligibility:

> Your spouse (but this may not help you become eligible since the same asset limit on both spouses’ assets will apply);
> A trust for the sole benefit of your child who is blind or permanently disabled — or, for the sole benefit of anyone under age 65 and permanently disabled.
In addition, you may transfer your home to those listed above, as well as to the following individuals:
> Your child who is under age 21 (rather unusual for nursing home residents);
> Your child who is blind or disabled (the house does not have to be in a trust);
> Your child who has lived in your home for at least two years prior to your moving to a nursing home — and, who provided you with care that allowed you to stay at home during that time (often referred to as the ‘caretaker’ child);
> A sibling who already has an equity interest in the house and who lived there for at least a year before you moved to a nursing home.  RLF