The application and the state's numbers
Gifts and transfers
Fill in the figures, then click Work out the penalty.
Penalty period
If the application were later
| Application date | Counts | Penalty months |
|---|
Waiting only shortens the penalty if the care in between is paid some other way. Costs of waiting are not modelled.
What it does, and what it leaves to you
- Counts: transfers dated inside the window ending on the application date, less any you mark exempt and any you enter as returned. Penalty months = total divided by your divisor; the care gap = months of penalty times (monthly cost minus income).
- Not decided: your state's actual divisor, window and exemptions; whether a transfer was for fair value; trusts, annuities, the home, income-only states; the spouse's protected amounts; and whether and when to apply.
Common questions
What is the Medicaid look-back period?
When you apply for nursing-home Medicaid, the state looks back at transfers you made for less than fair value. The federal period is 60 months before the application date; a few states use a shorter one. A gift inside the window creates a penalty period during which Medicaid will not pay for nursing-home care.
How is the penalty period calculated?
Countable transfers are divided by the state's penalty divisor, which is a monthly figure the state sets as the average private-pay cost of a nursing home. $95,000 with a $10,500 divisor is about 9 months. Many states count the leftover fraction as days; some drop it.
When does the penalty period start?
Under the federal rule it generally starts when the person is in a nursing home, has applied, and would otherwise be eligible, not on the day of the gift. That is why giving money away and then waiting does not run the clock. Enter that date as the application date.
Which transfers do not count?
Federal law exempts transfers to a spouse, to a blind or disabled child, into certain trusts for a disabled person, and for a home transferred to a caregiver child who lived there two years or to a sibling with an equity interest. The state decides whether you qualify, so keep the paperwork. Put the word exempt in the note column to leave a transfer out of the total.
Can a gift be undone?
In many states, giving the money back reduces or cancels the penalty. Enter the amount returned to see the effect. Rules on partial returns differ, so ask an elder-law attorney.
Does this tell me what to do?
No. It is a worksheet that does arithmetic on the figures you enter. The divisor, window, exemptions and the treatment of trusts, annuities and the home vary by state, and mistakes here are costly, so use an elder-law attorney or your state Medicaid agency before moving any money.
Is my data uploaded anywhere?
No. Everything is worked out in your browser and nothing is sent; a test in the code asserts there are no network calls.