Ideal Planning for a Potential Medicaid Applicant with a Disabled Child

Assume an individual who is elderly but does not need nursing home care has one child, who is disabled. The individual has a house and several hundred thousand dollars.

The plan would be to transfer all the assets to the disabled child, which would be an exempt transfer. The disabled child would then use the monies transferred on the care of the individual.

Should the individual go into a nursing home, there would be no transfer. That is, the monies retained by the disabled child would be exempt from the transfer rules as would the monies used by the disabled child for the applicant.

Also, since the home is out of the applicant's "estate", the lien would not apply.

Disclaimer: This article does not constitute legal advice and each person may have unique facts for which legal consultation may be necessary.
© February 2011, Post 133