Medicaid's Attempt to Ensure the Healthy Spouse Has Enough Income: The MMMNA
When most of a couple's income is in the name of the spouse who is receiving Medicaid, the spouse remaining in the community...Read more
In most states, transferring your house to your children (or someone else) may lead to a Medicaid penalty period, which would make you ineligible for Medicaid for a period of time. However, there are circumstances in which transferring a house will not result in a penalty period.
One of those circumstances is if the Medicaid applicant transfers the house to a "caretaker child." This is defined as a child of the applicant who lived in the house for at least two years prior to the applicant's entering a nursing home and who during that period provided care that allowed the applicant to avoid a nursing home stay. In such cases, the Medicaid applicant may freely transfer a home to the child without triggering a transfer penalty. Note that the exception applies only to a child, not a grandchild or other relative.
Each state Medicaid agency has its own rules for proof that the child has lived with the parent and provided the necessary level of care, making it doubly important to consult with your attorney before making this (or any other) kind of transfer. To find an attorney near you, go here: https://www.elderlawanswers.com/elder-law-attorneys.
Others to whom a home may be transferred without Medicaid's usual penalty are:
For more on Medicaid's asset transfer rules, click here.