Giving Away What You Own

to Qualify for Medicaid and Protect Your Life Savings

 The 5yr Look Back Rule for Giving Away What You Own to Qualify for Medicaid and Protect Your Life Savings

You might be tempted to think, “Well, if it looks like I’m going into a nursing home, then I’ll just give what I own to my loved ones so the nursing home doesn’t get it.”  However, there’s a problem.  Over time, Medicaid figured out that people were doing just that and created a rule to stop it.  The rule is called the 5yr look back rule.  To protect your life savings, you must give away what you own to your loved ones more than 5yrs before needing nursing home care.  If you give away what you own less than 5yrs before needing nursing home care, then you violate the 5yr look back rule.

Exceptions to the 5yr Look Back Rule on Giving Away What You Own

Medicaid has some exceptions to the 5yr look back rule.  What I mean by “exceptions” is that you can give away personal property and real estate, under certain circumstances, less than 5yrs of entering a nursing home, and not violate the 5yr look back rule.

(1)        Personal Property Exceptions to 5yr Look Back Rule—“personal   property” is any property that is not real estate like bank accounts, investments and other assets.  You can give personal property to any of the following:

(a)        Spouse.

(b)        Blind child or in trust for the child.

(c)        Disabled child or in trust for the child.

(d)        Trust for benefit of disabled per person under age 65.

Giving away that personal property would be an exception to the 5yr look back rule, which means no violation and you qualify for Medicaid.

For example, if you transferred $450,000 in investments to any of the listed exceptions, even if it was less than 5yrs of entering a nursing home, you’d still qualify for Medicaid and not violate the 5yr look back rule.  Otherwise, if you didn’t take advantage of that exception, then you may have to use the $450,000 to pay the nursing home care, and at an annual cost of $117,516, it would not take long to completely wipe out your $450,000 in investments.                         

(2)        Real Estate Exceptions to 5yr Look Back Rule—you can gave your home to any of the following:

(a)        Spouse.

(b)        Child under 21 years old.

(c)        Blind child;

(d)        Disabled child;

(e)        Caretaker child; or

(f)        Brother or sister who owns the house with you.

Giving away your home to any of the listed exceptions would be an exception to the 5yr look back rule, which means no violation and you qualify for Medicaid.

So let’s change the example of $450,000 in investments to a house worth $450,000.  Therefore, if you transferred your home worth $450,000 to any of the listed exceptions, even if it was less than 5yrs of entering a nursing home, you’d still qualify for Medicaid and not violate the 5yr look back rule.  Otherwise, if you didn’t take advantage of that exception, then you may have to use the $450,000 to pay for nursing home care, and at an annual cost of $117,516, it would not take long to completely wipe out the value of your $450,000 home.

Want Peace of Mind and a Complete Evaluation of Your Case? 

 Call (610) 347-5035 NOW or Click HERE to Schedule a Consultation with Chester County Pennsylvania Nursing Home & Elder Law Attorney, Michaelangelo L. Dippolito.  Click HERE to see the attorney’s background.

Not Ready to Speak to an Attorney Yet?  No Problem.

Get this FREE Book and Consumer Protection Guide, Paying for Nursing Home Care in Pennsylvania, A Consumer Protection Guide on What You Need to Know to Protect Your Legal Rights.  Here’s Some of What’s in the FREE Book and Consumer Protection Guide:

  • What’s it Cost & Who’s Gonna Pay?
  • 10 Moves You Can Make to Qualify for Medicaid & Protect Your Life Savings
  • Critical 5 Step Process to Your Medicaid Claim for Nursing Home Care
  • What You Need to Know About Lawyer Fees
  • Arming Yourself with Knowledge is the First Step to a New Beginning
Click to get your Free Book

Still Not Ready and Want to Learn More Before You Move Forward?  No problem.

Click HERE for more information on Nursing Home & Elder Law in Pennsylvania, and remember, we’re just a phone call away at (610) 347-5035.

Michaelangelo Dippolito 

Chester County Pennsylvania Nursing Home & Elder Law Attorney with ThePeoplesLawFirm.com

CONNECT WITH ME

Read Our Reviews

ThePeoplesLawFirm.com is rated 4.94 out of 5.0 stars based on 17 review(s).

---

- Ronald

---

- Bruce Peterson

---

- NORMAN J PATTERSON

---

- Emma Rickard

---

I reached out to various lawyers looking forward immediate answers as I just lost my uncle. I received a call from Mike who was very patient and took the time to listen and offer his opinion and the law as it pertained to my unique situation. There’s was never an attempt to get me to come in, to pay any fees whatsoever, just professional, compassionate legal advice free of charge.

- Thomas Johnson

---

- Thomas Johnson

---

- Thomas Johnson

---

The People's Law Firm.com were able to help me with a will being contested in FLA, connecting me to further assistance in that state, and also in helping me not give up my inheritance !

- Mike Blankenship

---

excellent law firm

- richard mastrangelo

---

excellent firm

- Richard T. Mastrangelo

---

I have known Mike Dippolito for 35 years; however, If he didn’t do an exceptional job representing me as a lawyer, I wouldn’t post this review. I hired Mike to represent me in a custody case. Mike clearly explained the steps he would take to prepare my case. As one step led to the next, Mike presented the scenarios we would encounter and he provided the legal basis for what were my best options. There was little emotional component to the decision-making. Mike presented the legal basis for my case and allowed me to make the final decision on how to proceed based on what the case law indicated the likely outcome would be. Ultimately, I never went to court, but the issue was resolved to my satisfaction. I highly recommend The Peoples Law Firm, and Mike Dippolito. The fee structure and methodology were agreed to in advance so there were no surprises. Given the stress of entering into a legal proceeding, I appreciated the lack of drama I had while dealing with my lawyer.

- Joe

---

I have known Mike Dippolito for 35 years; however, If he didn't do an exceptional job representing me as a lawyer, I wouldn't post this review. I hired Mike to represent me in a custody case. Mike clearly explained the steps he would take to prepare my case. As one step led to the next, Mike presented the scenarios we would encounter and he provided the legal basis for what were my best options. There was little emotional component to the decision-making. Mike presented the legal basis for my case and allowed me to make the final decision on how to proceed based on what the case law indicated the likely outcome would be. Ultimately, I never went to court, but the issue was resolved to my satisfaction. I highly recommend The Peoples Law Firm, and Mike Dippolito. The fee structure and methodology were agreed to in advance so there were no surprises. Given the stress of entering into a legal proceeding, I appreciated the lack of drama I had while dealing with my lawyer.

- Joe

---

Very responsive to inquiries and innovative in use of eservices to keep all file documentation and file notes for secure and ready use by clients.

- John

---

Mike was great to work with! He was thorough and he made sure I knew he was there to answer any questions and concerns I had. He made the situation we were dealing with very easy and handled it in a very timely manner. I would highly recommend Mike to anyone.

- Leigh

---

I’ve known Mike for many years and consulted with him on many legal matters. Most recently, I needed a power of attorney for my son who is in the military. Mike’s system is done all electronically and I was able to log on to a secure portal in his law firm and get the document. I would recommend Mike to anyone who is looking for a professional lawyer.

- Darrin

---

I have known Michael for 5 years. I asked him to assist me in a credit issue but he recommended that I call a lawyer specializing in credit and bankruptcy. The legal advice was excellent and the result was a $500 expense to save $4000. I appreciated his assistance. Even though he did not earn any fee from me, his analysis on my situation was accurate. I would recommend him to anyone interested in obtaining a professional lawyer.

- Gary Scott

---

Everything very professional and knowledgeable, and a real people person

- Lou Mancini

Write Review