Providing a Transfer was not made in order to qualify for Medi-Cal
Medi-Cal imposes a penalty period if you transferred (gifted) assets within five years of applying. What if the transfers had nothing to do with Medi-Cal? For example, what if you made a gift to your daughter to help her through a rough time? If you unexpectedly fall ill and need Medi-Cal to pay for long-term care, the State will likely impose a penalty period based on the transfer.
To avoid a penalty period, you will need to prove you made the transfer for a reason other than qualifying for Medi-Cal. The following evidence can be used to prove the transfer was not for Medi-Cal planning purposes:
The applicant was in good health at the time of the transfer. It is important to show the applicant did not anticipate needing long-term care at the time of the gift.
The applicant had a pattern of giving. A showing of helping children when they are in need or giving annual gifts to family or charity is needed.
The applicant had plenty of other assets at the time of the gift. The applicant giving away all of his or her money would be evidence the applicant was anticipating the need for Medi-Cal.
The transfer was made for estate planning purposes or on the advice of an accountant.
Proving the transfer was made for a purpose other than to qualify for Medi-Cal is not easy. If you innocently made transfers in the past and are now applying for Medi-Cal, consult your elder law attorney.
Ms. MacDonald’s practice is limited to Estate Planning, Probate & Trust Administration. Ms. MacDonald maintains her practice in the Santa Clarita Valley at 25115 Avenue Stanford, Suite A-209, Valencia, California. She can be reached at 661-294-6464.
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