Medicaid's Penalty Rules for Transferring Assets, the 5-Year Rule and Exceptions to the Rules
Ever heard it is "illegal" to transfer assets to qualify for Medicaid? Well it's not illegal, but there are penalties for transferring asets in the 5 years preceding an application for Medicaid. Essentially the basic rule states that if an asset is transferred, depending on the value (like the value of the property or the amount of money), there will be a corresponding "penalty." A penalty is a period of time in which Medicaid will simply not pay for the nursing home. We have to be very careful with transfers of assets for Medicaid. For instance, if a person transfers their house worth $220,000, Medicaid will not pay for their nursing home care for 36 months or three years - and the family will have to pay for the $7,000-$8,000 / month nursing home bill. But like all rules, there are exceptions and ways to plan within the rules.
All of these topics are covered in our guide, which you can easily view & download to on the right side of this page. Once you've learned the basics you might consider attending a free workshop, or taking advantage of a free asset protection consultation. Additionally, we offer you the ability to have us do a free asset protection analysis before you come in simply by submitting your information.