Medicaid Transfers Look-Back Period
Medicaid benefit eligibility is based upon the resources and income that an individual has in their own name. If some has has limited assets and limited income, the Medicaid program covers medical bills and long-term care for older or disabled individuals. (I'll cover the specifics another day.)
It used to be that the day before someone needed to go to the nursing home, they would transfer their assets to their children or grandchildren and then apply for Medicaid benefits. The government got wise to this idea and changed the application process to include a list of any transfers of assets for the three prior years. Specifically, any transfers made for less than fair market value (e.g. gifts).
Now, the law looks at transfers in the past five years in order to determine eligibility. Again, sales don't affect eligibility, but only transfers for less than fair market value. But transfers in the past five years will impact one's Medicaid eligibility.
The Medicaid eligibility rules and exceptions involved in the Medicaid planning process are complex and involved. Be sure to work with a knowledgeable advisor.
