Transferring assets has a direct affect on whether or not you will be able to qualify for Medicaid and when. The newest Medicaid law changes (called the "Deficit Reducation Act of 2005") has increased the look-back period of transferring assets from 3 years to 5 years. Most transfers within this time period are subject to a disqualification period, which does not begin to run until you have spent down to the qualifying level. Due to these new laws, making transfers before this 5-year period has expired is a sure way to lose most, if not all, of your assets. It is even more critical if a spouse is at home while the other is in a nursing home. How will the spouse that is at home be able to support themselves if all your money is gone?

Example:
Mrs. Smith had savings of $100,000. The average private-pay nursing home rate in her state is $10,000 a month. Mrs. Smith transferred $50,000 to her son to help him buy a home in 2006. Mrs. Smith became very ill and entered a nursing home facility in 2007. Mrs. Smith is not eligible for Medicaid until her assets do not exceed $2,000. With her $50,000 it only takes 5 months for her to be completely broke. At this point, she should be qualified for Medicaid. However, because she transferred the $50,000 to her son before the 5-year lookback period had expired, she received a 5 month penalty before she can qualify for Medicaid. This 5 month period would already have expired under the old laws, but due to the DRA, the penalty period does not begin to run until she has spent down her assets to the qualifying level of $2000. As you can see, there is a problem here. She has to wait 5 months before being on Medicaid, which is $50,000 worth of fees due to the nursing home. If her family does not pay this she may not be able to stay in the facility.

Planning ahead for these situations would have eliminated this problem, as well as saved a substantial amount of money for the family. Through our workshop you will learn everything you need to know to protect your family if a loved one requires nursing home care.

Learn more about Eligible and Ineligible Transfers, and Protecting Your Home and Assets from Nursing Home Costs