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
Showing posts with label exemption from transfer rules. Show all posts
Showing posts with label exemption from transfer rules. Show all posts
Monday, June 22, 2009
Friday, June 12, 2009
Practical Idea for Protecting the Home
Practical Idea for Protecting the Home
This article is another example of utilizing some of the theoretical rules discussed with respect to the home. This article addresses the two-year rule pursuant to which an applicant can transfer her home to a child and, if the child lives in the home for two years and provides care so that the mother need not go in a nursing home, the transfer would be exempt from the transfer rules (see Post 6).
The typical example would be Mrs. Jones owns a home and some other minor assets. Mrs. Jones is not ready to go into a nursing home but is declining to some extent.
Her daughter, Diane, is single and would like to take care of her mother.
Rather than the house be sold and the mother go into a nursing home, Diane would move in with Mrs. Jones and provide such care as to satisfy the two-year rule. Hopefully, Diane would be able to reside with her mother for two-years prior to application for Medicaid. In this way, the home would be saved and transferred to Diane, who happens to be the mother’s sole heir.
See Post 6, which discusses the two-year rule in more detail.
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 #41
This article is another example of utilizing some of the theoretical rules discussed with respect to the home. This article addresses the two-year rule pursuant to which an applicant can transfer her home to a child and, if the child lives in the home for two years and provides care so that the mother need not go in a nursing home, the transfer would be exempt from the transfer rules (see Post 6).
The typical example would be Mrs. Jones owns a home and some other minor assets. Mrs. Jones is not ready to go into a nursing home but is declining to some extent.
Her daughter, Diane, is single and would like to take care of her mother.
Rather than the house be sold and the mother go into a nursing home, Diane would move in with Mrs. Jones and provide such care as to satisfy the two-year rule. Hopefully, Diane would be able to reside with her mother for two-years prior to application for Medicaid. In this way, the home would be saved and transferred to Diane, who happens to be the mother’s sole heir.
See Post 6, which discusses the two-year rule in more detail.
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 #41
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