There is a penalty against people who transfer assets for less than fair value to qualify for Medicaid if they are getting or going to receive long term care services such as a nursing home. If you do this, you will not be able to get Medicaid.

The penalty period will not begin until:

• You move to a nursing home;
• You have spent down to the asset limit for Medicaid eligibility;
• You apply for Medicaid coverage; and
• You have been approved for coverage.

Transferring assets will not always trigger the penalty. Here are some examples. There will be no penalty for transfers to:

• A spouse;
• A child who is under 21;
• A child who is blind or has a disability;
• A trust for the benefit of a child who is blind or has a disability; or
• A trust for the sole benefit of a person who has a disability under age 65.