QUALIFIED TRANSFERS

When a person transfers a house to someone else Medicaid imposes a period of ineligibility for the amount of time it would take the applicant to spend that money on nursing home care. However, it is possible to avoid the penalty when the house is being transferred to the following individuals:

• spouse
• child who is under 21 or disabled
• a brother or sister with an equity interest in the home who resided in the home one year prior to institutionalization
• a son or a daughter who resided in the home for two years and provided care so as to keep the Medicaid recipient from becoming institutionalized

The rules are often ambiguous about the meaning of “residing in the home” and “providing care.” Relatives that you might think don't qualify may in fact qualify, and the other way around. This is why it is important to engage a New York Medicaid attorney before attempting this transfer, to make sure that the process is followed correctly and that the Medicaid application will not be denied.