If you have just begun to broach the process of Medicaid planning, you likely understand that it is state specific and can be extremely complex. Transferring assets to some people will trigger a period of Medicaid ineligibility, which could set you back by several months or longer due to transferring assets because you didn’t understand the specific rules. 
That’s why it’s a good idea to approach a knowledgeable elder law or estate planning attorney in advance to discuss your individual plans prior to making any assets because there is no way to undo the Medicaid ineligibility period as a result of your lack of understanding. However, there are some exceptions to the general rules about Medicaid ineligibility.
Exempted recipients can receive asset transfers without causing you to lose Medicaid benefits. These exempted recipients include a disabled or blind child, a spouse, a trust for the complete benefit of a disabled person under age 65, a trust for the benefit of a blind or disabled child, or a transfer to any other person so long as it is for the spouse’s benefit. Furthermore, an elder law attorney who has experience with Medicaid can explain to you that there are special exceptions associated with the transfer of a home. A Medicaid applicant is able to freely transfer his or her residence without incurring a transfer penalty.
In general, these people include a child under the age of 21 who is disabled or blind, the applicant’s spouse, a sibling who has lived in the home during the entire year preceding the institutionalization of that applicant who also holds an equity interest in the home, a caretaker child, or a trust that is for the sole benefit of a disabled person under age 65. To have more questions answered about the asset transfer process and how to avoid mistakes, schedule a consultation with a Medicaid lawyer.
