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TRANSFERRING ASSETS AFTER
ENTERING A SKILLED NURSING FACILITY
NJ
Medicaid has a 5 year lookback rule when it comes to the transfer of
assets. It has nothing to
do with when a person enters a nursing home.
On the other hand, it surfaces when a person applies for
Medicaid. When completing the Medicaid application, a person will have
to divulge whether or not they've gifted assets for three years prior
to the date of application. If a transfer has indeed taken place, NJ
Medicaid will impose a penalty period.
A
penalty period denotes a number of months that a person will be
ineligible for Medicaid assistance. During such penalty period, the
family must pay a nursing home's cost from private funds.
It is
significant to note that neither the 5 year lookback period or the
penalty period has anything to do with the date a person enters a
skilled nursing facility.
Consequently,
if a person transfers assets after they've been admitted into a
nursing home, such is acceptable provided:
-
the
transfers were one of the exceptions to the Medicaid 5 year
lookback rule. OR
-
before
applying for Medicaid, the family pays privately, for the duration
of the penalty period, before applying for Medicaid.
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