With the Medicaid look-back rule in mind, one thing to pay attention to is any transfer of assets you may have done within the last five-year period. But, what exactly is a transfer of assets?
In this Elder Law Minute video, part of the Medicaid Application Process series, Wes Coulson, Illinois and Missouri Elder Law attorney, explains what a transfer of assets is and why it could potentially delay your eligibility for Medicaid.
What is a Transfer of Assets?
Hi, I’m Wes Coulson and this is your Elder Law Minute. Continuing our series on the Medicaid Application Process, I want to talk today about transfers.
In several of the other videos, I talk about transfers and transfer penalties that delay eligibility. So, it raises an obvious question, and that is:
What is a transfer?
First thing you probably are thinking of is: Does that mean a gift? It does, but it means more than gifts. It means any means of transferring value to somebody else without getting equal value in return. So, let me give you some examples. If somebody says,
“I didn’t give my daughter a new car, I bought a new car for $20,000 and sold it to her for $1,000.”
Sorry, that’s a $19,000 transfer.
“I didn’t give my son $20,000, just when he got laid off of work, I loaned him $20,000 so he wouldn’t lose his house and his car. I told him, ‘You know what, when you get back at work, get back on your feet, you can pay me back.’”
Well, that still hasn’t happened yet. You may think of it as a loan, but the rules think of it as a transfer.
So, you have to be careful in looking for those because, again, any of that within five years can result in a delay in eligibility. Hint here: When you see those things, and I cover this in another video, you want to cover that prior to application because there are things that you can do to avoid or minimize the delay in eligibility intended to those transfers. Thanks.
For more about Medicaid and the application process, visit these articles:
- What you don’t know can hurt you: Understanding the Medicaid application process
- Understanding the Medicaid “Look-Back” and “Transfer Penalty” Rules
- The Basics of Medicaid: What you can and cannot keep
Coulson Elder Law is dedicated to providing families in the St. Louis area with their Elder Law needs. Our practice areas include Asset Preservation Planning, Veterans Benefits, Medicaid Eligibility, Alzheimer’s Planning, Special Needs Planning, Estate Planning and more. We understand the financial challenges you may face as you and your loved ones grow older. At Coulson Elder Law, our clients’ well-being is our number one priority. For immediate help, call (877)995-6876 or Contact Us and we will get in touch as soon as possible.