Elder Law Answers
Will My Mom Still Get a Penalty Period If I'm Using the Transferred Money to Pay Her Expenses?
My mother sold her home a year ago and moved into an independent living apartment. She had early stage dementia. The money...
Read moreCan I Transfer Mom's Life Insurance to Help Her Qualify for Medicaid?
- January 26th, 2015
Q
The nursing home has initiated a Medicaid application for my mother but I have not yet been contacted. Her life insurance policy's cash value exceeds Medicaid's $1,500 resource limit. Can I still transfer ownership of the policy?
A
The general rule is no, applicants for Medicaid may not transfer assets during the five years prior to application without triggering a waiting period for benefits. You may, however, withdraw the cash value in excess of $1,500 and spend it down, perhaps prepaying for your mother’s funeral if you haven’t done that already. Unfortunately, practices vary from state to state, so to be certain of your options you need to consult with the Medicaid agency or a local elder law attorney.
For more on Medicaid's asset transfer rules, click here.
Local Elder Law Attorneys in Ashburn, VA
Meet Mindy Felinton
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Mindy Felinton
Felinton Elder Law & Estate Planning Centers
Mindy Felinton concentrates in the areas of Medicaid planning, Veterans' Benefits, asset protection, nursing home planning, elder law, wills, estate planning, trusts, living wills, powers of attorney, probate administration and trust administration and began her legal career 30 years ago as an Assistant State Attorney...
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Margaret O'Reilly
Margaret A. O'Reilly, PC
Margaret A. O’Reilly is an estate planning and elder law attorney with over thirty-five years of legal experience. Attorney O’Reilly graduated from Duke University with a degree in psychology, and received her law degree from Northeastern University School of Law in Boston, Massachusetts. For over 15 y...
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Meet John Laster
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John Laster
Law Offices of John L. Laster
John Laster is a lawyer licensed to practice in Virginia, Maryland and the District of Columbia. He limits his practice to wealth transfer planning, trusts, wills, powers of attorney, health care decision-making issues, estate administration and related tax, elder law and disability concerns. Listed in The Best Lawyers...
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For more on how to spend down excess assets in order to qualify for Medicaid, click here.
Last Modified: 01/26/2015
