Transferring Home Ownership and Its Impact on Medicaid Eligibility 2024
Ensuring eligibility for Medicaid benefits in New York can be complex, especially when it comes to transferring assets like your home. Medicaid is a state and federally-funded program that provides healthcare coverage to eligible individuals, such as seniors and those with disabilities. However, strict asset and income limits must be met to qualify, and transferring your home can affect your eligibility.
Understanding Medicaid Eligibility Requirements
To qualify for Medicaid, individuals must demonstrate financial need and meet specific income and asset limitations. In New York, applicants must have limited income and assets to be eligible for coverage.
When assessing eligibility, Medicaid takes into account both countable and non-countable assets. Countable assets include cash, bank accounts, stocks, bonds, and real estate properties. Non-countable assets may consist of the applicant’s primary residence, household furnishings, personal belongings, and specific retirement accounts.
The Effects of Transferring Home Ownership on Medicaid Eligibility
Transferring ownership of your home can significantly impact your eligibility for Medicaid, especially if the transfer takes place within the Medicaid look-back period. The look-back period is a designated time frame during which Medicaid examines past asset transfers to determine if any disqualifying transfers were made for less than fair market value.
The current Medicaid look-back period in New York is five years. This means that any asset transfers made within five years before applying for Medicaid benefits may be scrutinized. If a disqualifying transfer is identified, a penalty period may be imposed, during which the individual will not be eligible for Medicaid coverage.
Exceptions to Medicaid Transfer Rules
While transferring your home can impact Medicaid eligibility, there are exceptions to the transfer rules that may allow you to transfer your home without jeopardizing your eligibility. These may include:
- Transfer to a spouse or minor child
- Transfer to a disabled or blind child
- Transfer to a caretaker child who has lived in the home for at least two years and provided care, enabling the homeowner to remain at home instead of a nursing home.
- Transfer to a sibling with an equity interest in the home who has resided in the home for at least one year before the homeowner’s admission to a nursing home.
Why Seek Legal Guidance
Given the intricacies of Medicaid eligibility and asset transfers, it’s essential to consult with an experienced elder law attorney before transferring your home. An attorney can help you understand the rules and regulations surrounding asset transfers and Medicaid planning in New York and develop a strategy to safeguard your assets while maintaining eligibility for Medicaid.
At Morgan Legal Group, we specialize in elder law and Medicaid planning. Our team of attorneys offers personalized guidance tailored to your unique circumstances and can help you navigate the complexities of transferring your home while preserving your Medicaid eligibility.
Don’t jeopardize your Medicaid eligibility by making uninformed decisions about your assets. Contact us today to schedule a consultation and learn how we can help you protect your assets and plan for your future in New York City.
