5724 Transfer of Property Penalty

If the LTC individual or spouse have transferred property for less than fair market value, the individual is ineligible to receive Medicaid covered LTC services for a specified period of time. This period of ineligibility is called the Transfer of Property Penalty Period. The penalty period only impacts long term care services and does not disqualify the individual for other medical assistance.

The penalty period is determined by considering the uncompensated value, date the asset was transferred and the appropriate transfer of property divisor.

The W-9, Transfer of Property Worksheet has been developed as a tool to assist with the calculation of the penalty period.