Answer

XXXXXX,

Any transfers can be considered for three years prior to applying for the benefit. After three years, the transfer is no longer considered.

If a transfer of assets for less than fair market value is found, the State must withhold payment for nursing facility care (and certain other long-term care services) for a period of time referred to as the penalty period.

The length of the penalty period is determined by dividing the value of the transferred asset by the average monthly private-pay rate for nursing facility care in the State. Example: A transferred asset worth $90,000, divided by a $3,000 average monthly private-pay rate, results in a 30-month penalty period. There is no limit to the length of the penalty period.

For certain types of transfers, these penalties are not applied. The principal exceptions are:

Transfers to a spouse, or to a third party for the sole benefit of the spouse;
Transfers by a spouse to a third party for the sole benefit of the spouse;
Transfers to certain disabled individuals, or to trusts established for those individuals;
Transfers for a purpose other than to qualify for Medicaid;
Transfers where imposing a penalty would cause undue hardship

Thus, if you are planning on giving away money, you need to do it three years before you apply for long term care.

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Thanks,
Christy