Timing of Transfer of a House to a Protected Transferee

In Post 6, I pointed out that the transfer of the home to certain individuals does not give rise to a penalty. One of these individuals is a child who provided care for a parent so that the parent need not go into a nursing home.

I pointed out also that the time of transfer is not defined by the statute.

The key point of this article and a point I feel necessary to repeat, is that the transfer should be made at the time of application for Medicaid. A prior transfer, could be challenged by Medicaid as not being a transfer to a protected transferee.

However, if the transfer is made pursuant to the Medicaid application, evidence can be adduced to show the services rendered by the child, and then Medicaid can approve the transfer of the house to the protected transferee without any penalty.

Of course the problem is if the child is only one of the beneficiaries under the will and receives the house, there may not be enough assets for the other children. You, as the attorney for the mother, should not be concerned about this issue for the obligation is to your client (the mother). However, I think you have a further obligation to explain to the transferee that the transfer could be challenged by the other children.

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

© June 2012, Post 201