Transfer penalties for transfers made for less than full consideration are not imposed on exempt transfers made during the Medicaid lookback period. Such exempt transfers include transfers to a spouse, disabled child, or to certain exempt trusts. In addition, a person’s primary residence can be transferred without penalty to:
- A spouse
- A child under the age of 21 years old
- A blind or disabled child of any age
- A sibling with equity interest in the home and lived in the home for at least one full year immediately preceding the Medicaid applicant’s institutional care
- An adult child that lived in the home for at least two full years immediately preceding the Medicaid applicant’s institutionalization to care for his parent which delayed the need for the institutional care
There are other exceptions and strategies to implement that should be pursued with the careful guidance of an experienced elder law attorney.
