7 Asset Transfers Which Will Not Affect “Nursing Home Medicaid” Eligibility

#1 Transfers to spouse. A married Medicaid applicant/recipient who is an inpatient at a nursing facility may, without penalty, transfer all assets to the spouse who is still living at home.

#2 Transfers to a blind or disabled child. A Medicaid applicant/recipient may transfer assets to his or her blind or disabled child, according to SSI criteria, or to a trust fund for such a child, without penalty.

#3 De Minimis gift. Each year, a Medicaid applicant/recipient may transfer $1,200.00 to anyone related by blood or adoption. For instance, a gift of $600.00 may be made to each of his or her two (2) children, once a year.

#4 Transfers of the home. The home may be transferred to the Medicaid applicant/recipient’s sibling if he or she has an ownership interest in the home and has been living there at least one (1) year prior to the nursing home admission.

The home may be transferred to the Medicaid applicant/recipient’s child if he or she has been living there for at least two (2) years prior to the nursing home admission and has provided care necessary which kept the parent from having to enter a nursing home.

The home may also be transferred to the Medicaid applicant/recipient’s spouse, blind or disabled child as well as his or her child under the age of 21.

#5 Pre-paid funeral arrangements. The Medicaid applicant/recipient may purchase irrevocable, pre-paid funeral arrangements for him or herself, his or her spouse, as well as for his or her children and for spouses of those children.  *Effective July 15, 2017:  Pre-paid funeral arrangments may only be purchased for the Medicaid applicant and/or his or her spouse.

#6 Transfers of wedding and engagement rings. The Medicaid applicant/recipient may give away, without penalty, one (1) wedding ring and one (1) engagement ring.

#7 Transfers of personal effects and household goods. The Medicaid applicant/recipient may give away, without penalty, up to $2,000.00 of personal effects and household goods.

The State of Indiana will impose penalty periods, or period of Medicaid ineligibility, for what it considers to be violative transfers of assets made within the past five (5) years.