Medicaid: Transfer Penalty Reversed Where Cured

Transfer Penalty Reversed Where Home Was Returned. Three months prior to a nursing home admission, a 98 year old Petitioner purchased her daughters home for $406,300, plus personal property valued at $26,775. She paid by transferring securities valued at $484,766.78, and $51,691.78 was returned to Petitioner as an over-payment. Petitioner’s alleged hope was that she could live with her daughter for the remainder of her life, with her daughter as her caregiver. In July, 2007, 9 days prior to applying for Medicaid, she transferred her home to her daughter as a caregiver child. The Court sustained DFCS’s objection to the caregiver child transfer, but after the hearing on that issue the home was re-conveyed to Petitioner and DFCS refused to remove the transfer penalty. The Court reversed. “When a transferred asset is transferred back to the A/R/, DFCS is required to void the transfer penalty and determine eligibility as if no transfer ever occurred.” This case was decided on cross-motions for Summary Determination.

OSAH-Gwinnett-Langston-7-2008.pdf (July 11, 2008).