Medicaid Tip of the Week

By Susan I. Jean, Attorney at Law, Certified Elder Law Attorney

Although seldom used, an interesting exception to the Medicaid “five-year rule” is that a home may be transferred from a Medicaid applicant to a sibling of the applicant who has resided in the home for at least a year and who owns an equity interest in the home.  The transfer, if done correctly, will not cause a Medicaid disqualification period.

 

For example:

Mary is widowed.  She lives in the home she and her sister Sarah inherited from their parents.  Sarah moves in with Mary, and lives in the home for one year.  Mary unfortunately has a stroke, and needs nursing home level care.  Mary can gift her ½ interest in the home to Sarah without causing a Medicaid disqualification period.

 

Disclaimer: this, like all Medicaid transfers, is carefully reviewed by the government and must be done precisely right.  I encourage those with Virginia Medicaid questions to call (757) 659-0006 to see what Medicaid strategies may be right for you.