ABA Family Legal Guide

The Rights of Older Americans

Health and Long-Term Care Benefits

Paying for Long-Term Care

If I have assets that exceed my state's Medicaid eligibility requirements, can I transfer these to my children or to a trust in order to qualify? After all, these are assets I intend to leave to my children when I die.

The law on transferring assets before making a Medicaid application is complex. Such transfers can result in a period of ineligibility for Medicaid benefits. Some financial avenues may be available to shelter or preserve some of your assets, but there are a number of legal, financial, ethical, and practical consequences to such a transfer. Anyone who may need to rely on Medicaid to pay for nursing-home care should seek advice from an experienced lawyer. Also, Medicaid has the right to "look back" at financial records for the 5 years prior to your Medicaid application. They will impose a "penalty period" of ineligibility based upon the value of gifts made during the look back period.