Legal Question in Wills and Trusts in Virginia

Re: Transfer of real estate prior to death/long-term illness

Such transfers are "illegal" if the sole purpose is to become eligible for Medicaid. However, people often transfer real estate for other reasons -- simplify the estate or as gifts. But there is a price. The individual will not be eligible for Medicaid aid for at least three years after the gift if the house is of any significant value. Also, the home is an exempt asset. As such, the individual may be eligible for Medicaid immediately. Medicaid may place a lien against the home but that may not be as bad as the low basis that grantees of the home would be stuck with if the home was gifted prior to the date of death. This may sound "cheesy" but Medicaid law can be complex and constantly changes. I would highly recommend you contact an attorney for advice based on your specific circumstances.