As we discussed in a previous post, there is a five (5) year disqualification period for Medicaid purposes for any improper transfer or gift. The question is what constitutes an improper transfer?
- Giving away assets for less than FMV unless such transfer is exempt under the rules; paying for your grandchild's education, your daughter's new car, and/or giving each of your children $14,000.00 for Christmas every year are all improper transfers
- Adding a child or another third party as a partial owner/owner of your property
- Selling assets for less than FMV; i.e., my car was worth $10,000.00, but I gave it to my grandson for $2,000.00
- Purchasing an annuity that doesn't comply with the Medicaid rules
- Paying a family member for services without a written contract
- Disclaiming assets from an inheritance