What if I give away my assets to qualify for Medicaid?

Neither the person applying for Medicaid nor the applicant’s spouse may simply give away assets in order to qualify for Medicaid. That is called a divestment. If any assets are given away or transferred within thirty-six (36) months of the Medicaid application (60 months for transfers to or from trusts), for the purpose of making the resident eligible for Medicaid, the resident may be subject to a period of ineligibility as a penalty. The period of ineligibility is based upon how long the assets could pay for nursing home care. For example, if the resident gave away $15,000.00 worth of assets, and the nursing home’s private pay rate is $3,000.00 per month, the resident would be ineligible for Medicaid assistance for five months. There are certain instances where divestments are allowed, however there are very few, and they are extremely limited.