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The former law provides a three year look-back for transfers to individuals and a five year look-back for transfers to trusts. The new law provides a five year look back for transfers to individuals as well as trusts. When an application for benefits is made, the reviewing authority has the right to examine all financial transactions of the applicant within the look-back period, which will now be five years for all transactions.
The look back period starts on the date of the application for benefits, and is subject to the current look back period of 5 years. Gifts that were made when the old law was in effect are not held to the 3 year look back period, because the look back period does not start until the application for benefits is filed. And it then goes by the current law that is in effect at that time.
So if your father does need to apply for Medicaid benefits, he will be subject to the 5 year look back period.
Thank you becky
So, in other words, any claim made after 4/28/2011 would not be subject to the look back period and anything made prior would be?
Hello again becky,
Even a claim made prior to 4/28/2011 would be subject to the 5 year look back period.
The new transfer rules apply to all transfers occurring on or after the date of enactment of the new law. The new law was enacted on February 8, 2006. Transfers made prior to that date would still fall under the 3 year look back period. But any transfer made after that point falls under the new 5 year rule. If your father's assets were not transferred to you until 4/28/06, all of those transfers are subject to the 5 year look back period, because they occurred after the enactment of the new legislation.
Some states were required to pass their own legislation in order for the law to become effective in their states. However, even though some states had a later effective date for the law, if a Medicaid application is filed after the enactment of the state law, it will still fall under the new transfer rules. So even if NC did not enact the law until November of 2006, the 3 year look back period would only apply to applications filed prior to that time. Applications filed after November 2006 are still subject to the 5 year look back period, except for gifts given prior to February 8, 2006. The delay in state enactment did not push up the date where gifts given prior to that time were exempt from the new rules.