In this third of a six part series on the Medicaid Look-Back Rule and Transfer Penalties, Wes Coulson discusses transferring assets between spouses and whether, or not, they will cause a Medicaid transfer penalty.
Will transferring assets between spouses cause a Medicaid Transfer Penalty?
Transcript:
Hi, I’m Wes Coulson and this is your Elder Law Minute. This is the third in our six part series on the Medicaid Look-Back Rule and Transfer Penalties.
Today we’re going to talk about transfers of assets between spouses. Under the Rules, if you have a married person applying for Medicaid, they’re subject to the more severe asset limit, $2000 in Illinois, $1000 in Missouri, but the community spouse, the other spouse, can have a significant amount of additional assets, varies between Missouri and Illinois. So one of the questions raised is “Is it okay to give assets from one spouse to another, or is that going to cause a transfer penalty?” The answer is, that it won’t. If you will, from a Medicaid standpoint, a husband and wife are not treated as two different people, but rather only as one. So, transferring assets from one spouse to another is like me taking my wallet out of one pocket and putting in another. I still have it, it hasn’t gone anywhere, and it’s not considered a transfer. Thanks.
For the complete Medicaid Look Back Rule and Transfer Penalties series, visit these articles:
- Will routine gifts cause a Medicaid Transfer Penalty?
- Withdrawals from Joint Accounts: Are they subject to transfer penalties?
- Look-Back Rule and Delay in Eligibility
- Gifts and the Five-Year Look Back
Dent-Coulson Elder Law is dedicated to providing families in the St. Louis area with their Elder Law needs. Our practice areas include Asset Preservation Planning, Veterans Benefits, Medicaid Eligibility, Alzheimer’s Planning, Special Needs Planning, Estate Planning and more. We understand the financial challenges you may face as you and your loved ones grow older. At Dent-Coulson Elder Law, our clients’ well-being is our number one priority. For immediate help, call (877)995-6876 or Contact Us and we will get in touch as soon as possible.
