QUESTION:

For purposes of Medicaid eligibility, can an applicant transfer property to his/her spouse without receiving a transfer penalty?

ANSWER:

Yes.  Transfers to certain qualifying persons, direct or in trust, are permitted within the look-back period of 36 months (or 60 months if the transfer was in trust):

   1.   An applicant can transfer assets to a spouse or disabled child, directly or in trust, without invoking any penalty.

   2.   A transfer to a trust for the sole benefit of a disabled person (as defined in Social Security ) is permitted.

   3.   An applicant can transfer his/her home to a live-in care-giver child after two years or a child under age 21 years, and certain siblings, without incurring any penalty.