“[N]o government agency has the right to complain that middle class people choose to voluntarily inflict poverty on themselves, when it is the government itself which has established the rule that poverty is a prerequisite to the receipt of government assistance in defraying the costs of ruinously expensive but absolutely essential medical care.” In re Shah, 257 A.D.2d 275 (2d Dep’t 1999), order aff’d, 95 N.Y. 2d 148 (2000) (emphasis added).
This means that as long as you don't violate Medicaid's eligibility rules, it is not illegal to gift assets to a trust or relative in order to qualify for Medicaid. As with anything, though, time is of the essence.
Medicaid has different eligibility rules and penalties depending upon the type of care you need.
Medicaid Community Care, such as home health aids and skilled care in your home, does not carry a penalty period for transfers. You can transfer assets today and qualify on the first day of the next month for Medicaid.
Medicaid Community Care, such as home health aids and skilled care in your home, does not carry a penalty period for transfers. You can transfer assets today and qualify on the first day of the next month for Medicaid.
Medicaid Institutional Care, such as nursing homes, will impose a penalty period for uncompensated gifts/transfers made within the last five years. Such transfers include funding an irrevocable trust, gifts to family members (with certain exceptions to be discussed in a future blog post), disclaiming/refusing/renunciating an inheritance, or failing to exercise a right of election in a spouse's estate. It's important to do your Medicaid planning today in order to avoid any penalty period.
It's important to do your Medicaid planning today in order to avoid any penalty period. Get help now with your Medicaid planning by calling attorney Moira LaidLaw at (914) 767-0646 or email Moira at mlaidlaw@laidlawfirm.com.
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