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1275 (07/2026) Chapter 8: Examples • Chapter 8: Examples Example 1: Transfer of a home by an individual Clara lives in a home that she owns and has been receiving Medicaid and in-home services for the past 6 months. Clara decides to transfer the home to her daughter Debra for zero compensation. Clara states that the reason for the transfer was that she has always intended to leave the home to Debra. Debra works full-time, lives in an apartment and does not provide care to Clara. This transfer of assets is disqualifying, because even though Clara does not say that maintaining eligibility for Medicaid benefits was a factor in the decision to transfer the home, it was. If Clara had transferred the home for compensation equal to its value, she would most likely have become ineligible for Medicaid (unless Clara was going to invest the proceeds into another home). Therefore, the decision to transfer the home for zero compensation was made to maintain eligibility and is a disqualifying transfer. Example 2: Transfer not for the purpose of eligibility Ben is in good health and gives his son George $40,000 for a down payment on George’s first house. Two months later, Ben suffers a debilitating stroke and is in need of medical benefits and long-term care. This transfer is not disqualifying, because it was done exclusively for a purpose other than to become eligible for medical benefits. The purpose was to help George buy his first house. At the time of the transfer, Ben did not anticipate a need for medical benefits. Therefore, the transfer was made without the asset limit for Medicaid as a consideration. Example 3: Transfer with potential Medicaid need Sadie resides in an assisted living facility and gives her son Joe $40,000 for a down payment on Joe’s first house. Two months later, Sadie can no longer afford her care situation, so she applies for medical benefits. Sadie’s assets are now under $2000 and her income has not changed. This transfer is disqualifying, because although it was made for a purpose other than to become eligible for medical benefits (to help Joe buy his first house), at the time of the transfer Sadie could anticipate a need for Medicaid to pay for her cost of care. Sadie would not have gifted the $40,000 if she did not expect to become eligible for medical benefits when her assets dipped below the $2000 Medicaid limit.