Will I incur a penalty?

When you apply for Medicaid, the local agency will analyze all financial transactions made by you and/or your spouse during a specified "look-back" period. The look-back period is 36 months for outright transfers and 60 months for transfers to certain trusts for transfers before  February 8, 2006.  After that date, the look back period is 60 months for both outright transfers and trust  transfers. Thus, if either you, or if you are married, your spouse, transfer assets for less than fair market value within the applicable look-back period, a penalty period, during which you will be ineligible to receive Medicaid benefits, will be imposed upon such transfers. The greater the uncompensated value of assets you transfer, the longer the penalty period imposed. In calculating the penalty period, you must take into account the uncompensated value of the asset transferred, the cost of nursing home care, and income you are receiving from other sources, among other items. We can advise you regarding the proper amount that can be transferred under applicable Medicaid regulations

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Last modified: 12/21/06

Mark G. Aberasturi, a New York elder law lawyer and estate planning attorney, focuses his law practice on Elder Law and Probate, Estates, Wills and Medicaid Trusts, Living Trusts, Supplemental Needs Trusts, Living Wills and Estate Tax.  Mr. Aberasturi provides legal advice on matters involving Medicaid, Medicare and nursing homes.  Mr. Aberasturi is a member of the National Academy of Elder Law Attorneys, The New York State Bar Association Elder Law Section, and is former chairman of the Orange County, New York Bar Association Elder Law Committee.  His practice is located in Goshen, Orange County New York.

 

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