Transfers of Assets by Elderly Individuals to Obtain Long-Term Care Coverage

September, 2005 Transfers of Assets by Elderly Individuals to Obtain Long-Term Care CoverageIn fiscal year 2004, the Medicaid program financed about $93 billion for long-term care services. To qualify for Medicaid, individuals' assets (income and resources) must be below certain limits. Because long-term care services can be costly, those who pay privately may quickly deplete their assets and become eligible for Medicaid. In some cases, individuals might transfer assets to spouses or other family members to become financially eligible for Medicaid. Those who transfer assets for less than fair market value may be subject to a penalty . . .