A common misconception with regard to Medicaid is that you will need to give away all of your property before you can qualify for Medicaid benefits. As a result, one may mistakenly believe that one can transfer property to family members in order to reduce one’s estate. The problem is, you cannot simply give away your property when you decide to apply for Medicaid.
In fact, there was a law passed in 2005 which created a period of ineligibility for anyone who transferred their property to someone else at any time within five years of submitting their application for Medicaid benefits. Because the period of ineligibility begins when you actually apply for Medicaid, timing is very important and creating a Medicaid plan early is crucial.
