Will I incur a penalty? When you apply for Medicaid nursing home benefits, 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 60 months for outright transfers and 60 months for transfers to certain trusts. 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.
Note that the 60 month look-back period does not apply to non nursing-home Medicaid services, such as home care.
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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.
Servicing the Hudson Valley area, including Monroe New York 10950, Montgomery New York 12549, Middletown New York 10940 and 10941, Newburgh New York 12550, Wallkill New York 12589, Washingtonville New York 10992, Chester New York 10916, Port Jervis New York 12771, New Windsor New York 12553, Cornwall New York 12518, Central Valley New York 10917, Highland Mills New York 10930, Florida New York 10921, Walden New York 12586, Warwick New York 10990, and Maybrook New York 12583, Tuxedo Park New York 10987, Blooming Grove New York 10914, Circleville New York 10919, Fort Montgomery New York 10922, Harriman New York 10926, Pine Bush New York 12566, New Hampton New York 10958, Slate Hill New York 10973, Wallkill, New York 12589, as well as Ulster County, Sullivan County and Rockland County.
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