If the value of your non-exempt assets exceeds the resource limit when you initially apply for Medicaid, you will not qualify and you will be expected to pay for your LTC out of your own pocket. Transferring assets in contemplation of applying for Medicaid won’t work because Medicaid uses a five-year “look-back” period. The look-back rule allows Medicaid to review your finances for the five-year period prior to application for any assets transfers made for less than fair market value. If uncompensated transfers were made, Medicaid will withhold coverage from you. The way to avoid finding yourself in this situation is to incorporate Medicaid planning into your estate plan long before you are likely to need to qualify for Medicaid.
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