This is the most frequently asked question and the most misunderstood aspect of Medicaid planning. We find that CPA’s and Financial Planners are also giving families wrong information. Nursing home business offices also misunderstand this rule.
The Federal Government forces the State of Wisconsin to ask an individual if they have transferred any assets or given any gifts to anyone within five years (60 months) of the date of application. Any gifts or any transferring of assets within the 5 years are subject to penalties. Any gifts or any transferring of assets made greater than 5 years of the date of application are not subject to penalties.
For example, you gave your daughter $150,000 to buy a home in October of 2010 and applied to Medicaid in November of 2015, there would be no penalty.
In the same example if you applied for Medicaid in November of 2014, you would be denied Medicaid and have a penalty period of approximately 20.5 months and would be denied until mid July 2016. Please call for a free consultation with our Benefit Specialist to understand your unique situation.