Legal Question in Elder Law in Ohio

When a person applies for Medicaid, their assets are looked at in detail. Ohio Medicaid workers have access to IRS data matching, so they can verify things such as interest reported on bank accounts and other potentially taxable events like sale of a home, and thus can determine if assets or resources have not been disclosed on an application.

They also look at any asset transfers within the 60 months prior to the application, and any transfers that have been made for less than fair value will be deemed improper and can result in denial of the application and a period of ineligibility unless the improper transfer can be cured. Of course, the applicant must disclose any transfers of which they are aware, or risk being charged with fraud.

Stated simply, a gift or a sale of something for less than what it is really worth is an improper transfer. So, if you mother sells the home for what it is worth, it would not be an improper transfer, but of course then she would have a sizeable sum of money that would disqualify her from Medicaid because she has too much money. If she signs over the house to the tenant for free it would be an improper transfer. If the house is worth 100k and she sells it for 25k, then that would be an improper transfer of 75k.

Now, having said all of that, there are a couple exceptions to these general transfer rules which involve things such as siblings with actual equity interest in the home, disabled or dependent children that might live in the home, or a caregiver child that might live in the home.

These exceptions and when and how they apply, along with Medicaid law in general, are very detail specific and very complicated. The best advice I can give you is to strongly suggest your mother see and experienced elder law attorney to have her whole situation reviewed in detail. There may be several estate planning and / or asset protection options available for her situation, but she needs a detailed review. I wish you the best of luck with your mom and her situation.