Transfers for a Purpose Other than to Qualify for Medicaid

Transfers for a Purpose Other than to Qualify for Medicaid

Another exemption from the transfer rules is a transfer exclusively for a purpose other than to qualify for Medicaid.

I recently had a case in which a 78-year old father transferred approximately $40,000 to pay for his child’s wedding. The father was as healthy as an individual his age could possibly be and had no thought of going into a nursing home.

Generally, the position of Medicaid is that it is extremely difficult to show that Medicaid was not one of the reasons for the transfer. However, presented with such a case, points to be stressed are the health of the individual at the time, the uniqueness of the purpose of the transfer (i.e. wedding of child) and additional points that would negate Medicaid ineligibility (such as, the child voluntarily making payments back to the father before Medicaid was even an issue). The gentleman passed away before Medicaid was able to make its determination.

The key point of the above analysis is that a representative should never give up if there are valid arguments in favor of the applicant.

Disclaimer: This article does not constitute legal advice and each person may have unique facts for which legal consultation may be necessary.


© June 2009, Post #43