While most transfers by a Medicaid applicant would make the applicant ineligible for Medicaid benefits for a period of time (called a penalty period), there is an exception if the applicant transfers assets to a disabled child. Transferring the assets directly to your sister, however, could negatively affect her ability to receive disability benefits. Your sister can protect her benefits if she has a special needs trust. These transactions are very complicated and should be handled by an attorney. Here is a directory of attorneys who work in this area of the law: http://specialneedsanswers.com/special-needs-planner
For more information on Medicaid’s asset transfer rules, click here.
For information about special needs trusts, click here or visit our sister website, Special Needs Answers.
Can My Mother Transfer Her Life Insurance Policy to My Disabled Sister?
