We’ve talked before about countable vs. non-countable assets, but one thing that must be considered as well is that Medicaid also looks at transfers of property, money etc that have occurred. In general, if your loved one with Alzheimer’s needs to apply for Medicaid, they will look back at all transfers that took place over the last 5 years (depends on your state) to see if they were proper or improper.
If Medcaid believes an improper transfer took place, they can apply a penalty period for a transfer. So if for example your mom needs to go into a nursing home and apply for Medicaid, but 2 years ago she gave you $40,000, this may be viewed as an improper transfer subject to a penalty (it was within 5 years of the date she is in the nursing home and applied).
The penalty means that your mom would have to wait out a “penalty period” until she is eligible for Medicaid to help pay. It’s not just gifts of cash that can subject your family member with Alzheimer’s to a penalty, so it’s very important to at least have a good understanding of how the rules work, so that you can plan accordingly.
For more information and a FREE ebook on paying for Alzheimer’s Care-head on over to http://payingforalzheimerscare.com/
Filed under: Alzheimer's and Medicaid | Tagged: Alzheimer's Disease, alzheimers, elder law, medicaid, nursing home | 1 Comment »
Paying For Alzheimer's Care-A Blog About Helping Families Face Alzheimer's Head On and Do So Without Going Broke 