No. There is nothing illegal or improper about transferring your assets to family members or to a trust. However, if you are applying for Medicaid nursing home care, and have made transfers within the “look back” period, you may be subject to a “penalty period” during which Medicaid will not pay your nursing home bill. Note that certain transfers do not trigger a penalty (for example, transfers between spouses), and that the “look back” does not apply to Medicaid’s home care or assisted living programs. Further, even if you are subject to a “penalty period,” there are often Elder Law strategies available to reduce the penalty and save a substantial portion of your assets.
For effective planning, if you are making any transfers of your assets now, the five-year look back period must be taken into account.
Contact Us Today!