Transfers to Spouse

Transfers to Spouse

An individual shall not be ineligible for Medicaid under the transfer rules to the extent that assets are transferred to a spouse. The theory is that since all spousal resources are deemed available to the Medicaid applicant, such a transfer should not be penalized.

Transfers to the community spouse certainly make sense in terms of management of assets, particularly in light of the fact that the institutionalized spouse could become incompetent. Further, if the income generated by spousal assets could pay for nursing home costs and support of the community spouse with no or minimal invasion of principal, outright transfers to the community spouse could be a viable alternative without any additional planning. Of course, one would have to have substantial assets to generate such income.

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


© July 2009, Post #45