I heard from a neighbor but can’t confirm that Medicaid’s five year “look back” for assets that can be applied to nursing home expenses is cut back to two years if a family member lives in the house and acts as caretaker. If so, do they have to be living there for two years before the reduced look back takes effect? Or does it take effect right away? Thanks!
ATTORNEY ANSWER BY MARGARET L. CROSS:
There are a few exceptions to the transfer penalties that are applied by Medicaid to applications. One such exception is a caretaker child exception. It extends down only to a child, no further. If that child resides in the home for 2 years prior to the applicant entering the nursing home AND provided care which delayed the entry of the applicant into the nursing home,then Medicaid will not apply the transfer penalty. In Massachusetts, the current regulations read only that the entry is delayed, not that the care had to be for two years. The house can only be deeded to the child. You need to consult with an elder law attorney to determine if you can qualify for the caretaker child exception or any other. Planning early is the key to Medicaid.
Legal Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on since each situation is fact specific, and it is [Read more…]