In this Elder Law Minute, Wes Coulson lets us in on a dirty little secret about how Medicaid Transfer Penalties work relative to the Look-Back rule.
Medicaid Transfer Penalties and the Look-Back Rule
Hi, I’m Wes Coulson and this is your Elder Law Minute. I’m going to let you in today on a dirty little secret that I think people ought to know about how Medicaid Transfer Penalties work relative to the Look-Back rule.
At times, people have said, “Well, you know, let’s just go ahead and we’ll get things out of the name of the person who is applying and maybe it’ll work and, you know, if it doesn’t then in a worst case, because of this look-back rule, there will be a five year delay in eligibility.” Unfortunately, that’s not the way it works. The length of delay in eligibility after applying for Medicaid is a function of how much has been given away within five years. The more that has been given away, the longer the delay in eligibility. If you had somebody with enough money who gave it away and then applied for Medicaid within five years, they could indeed be facing a delay in eligibility for seven, 10 or 12 years from that time.
The moral of the story: If you have engaged in any gifting within five years, don’t file a Medicaid application until you’ve first spoken with a competent elder law attorney to find out the consequences of what you’ve done. It could be a lot worse than what you think. Thanks.
For more about Medicaid Transfer Penalties and the Look-Back Rule, visit these articles:
- Will transferring assets between spouses cause a Medicaid Transfer Penalty?
- Will routine gifts cause a Medicaid Transfer Penalty?
- Strategies for Transfer Penalties
- Transferring Assets to Qualify for Medicaid
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.