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Medicaid Transfer Penalty
Blog for November 25, 2015
The Story: George, age 67 years, is a widower. He had a stroke two years ago and needs skilled nursing care. His daughter, Mary, has taken care of him for the last two years and her care has allowed George to live at home rather than go into a nursing home. Now his health has declined and he needs a nursing home.
Question: Can George give his home to his daughter, Mary, and be eligible for Medicaid benefits without a transfer penalty?
Answer: Yes. George can transfer his home to Mary, without penalty, because Mary resided in the home for at least two years before George became institutionalized and her care allowed George to remain at home.
Also, there is no transfer penalty if the home is transferred to a child under the age of 21, blind, or disabled.
See PPM Section 2640.10.15.05; 405 IAC 2-3-1(k)(1)