Medicaid Transfer of Assets

Medicaid Transfer

As you might be aware, Medicaid has a “look back” period of five years for transfers. This means that a person can not take their assets, transfer them to a family member, or an irrevocable trust, and then apply for Medicaid. The Department Children and Families will dig through the financial records looking for any transfers within a five year period.

What is more often overlooked are “unrealized” transfers. So, obviously if someone writes a check out of their bank account to their grandchild, that is an obvious transfer. How about if they were to simply add the grandchild to the banking account from an estate planning perspective (this is often done rather than execute a formal power of attorney)? Well, that is also a transfer. Slightly less obvious but still a transfer. Another “unrealized” transfer is also a “short cut estate plan” whereby the potential Medicaid client will do a Quit Claim Deed naming a family member as another person on the deed. While this is an often used estate planning technique, it is recommended that you speak with an Elder Attorney prior to doing this. Medicaid will treat the new deed as a transfer, and penalize the applicant for the transfer.

We want to help you avoid costly mistakes. Call us for a free consultation.

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(786) 463-4463

North Miami Beach, Florida