Transfer of an Excludable Resourse

There is a misconception that if an individual transfers an excludable resource that such a transfer is exempt from the transfer rules. This is incorrect.

For example, as indicated by "Real Estate Planning ideas for a Married Couple" - Post 11, the home is an excludable resource whether owned by the applicant, spouse or jointly.

Suppose the house is in the husband's name and he transfers the house to the child. This transfer is subject to the transfer penalty even though the transfer is of an excludable resource. The proper technique with respect to the home is to transfer the home into the sole name of the community spouse (whether owned jointly or by the applicant) at the time of institutionalization (the reason for such transfer are set forth in Post 11).

However, the house can be transferred by the community spouse to the child after the applicant receives Medicaid. This is consistent with the principles set forth in Post 13 that the community spouse is no longer limited to the community spouse resource allowance after the date of eligibility. Similarly, the appropriate time for transfer is at that time and when the house is in the sole name of the community spouse.