Do I have to wait 5 years after giving anything away to get Medicaid?
Medicaid has a five-year look-back period from the date of application where they look back five years to see if you’ve given away any gifts or uncompensated transfers. If you have, they have a penalty for that.
During your Medicaid application process, one of the questions you are expected to answer is “Have you made any transfers or gifts in the last five years?” now, if your reply is yes! This might lead to disqualification or penalized and also required to mention any of the gifts or transfers you have made.
The Medicaid state officials will look only at giveaways within five years i.e., 60 months before Medicaid application. To ensure accurate calculation by Medicaid, the total number of what you gave away will be divided by the penalty divisor (which equals the cost of nursing home care in the state).
However, during the Medicaid look-back period, sometimes the penalty for transfers is not applicable to all transfers depending on what asset was transferred and the person such asset was transferred to and the time of the transfer. In all, the look-back period determines what kind of transfer will be penalized.
If this is somewhat confusing, you can always consult Walser Law for more clarification.