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1276 (07/2026) Chapter 8: Examples • Chapter 8: Examples Example 4: Transfer not for the purpose of eligibility Raymond has $150,000 assets and is paying privately for care in an adult foster home. Raymond gives his grandchild Leonard $50,000 when Leonard successfully completes medical school. With Raymond’s monthly income, he expects the remaining $100,000 will be sufficient to pay for his care for the rest of his life. However, 2 months later, Raymond’s dog bites another resident’s visiting granddaughter. The family sues Raymond and the court awards $100,000 in damages to the victim. Raymond cannot now afford his living situation and applies for medical benefits. The $50,000 gift is not a disqualifying transfer, because it was made exclusively for purposes other than to become eligible for medical benefits. Raymond did not anticipate a need for medical assistance at the time that he made the $50,000 gift. Therefore, the transfer was made without the asset limit for Medicaid as a consideration. In addition, Raymond did not anticipate and had no choice in paying the $100,000 damages awarded by the court. Example 5: Transfer by community spouse after eligibility Sam and his spouse Ruth apply for medical benefits because Sam is in need of long- term care. In the resource assessment process, it is determined that Ruth can keep $110,000 in assets; Sam is determined eligible for long-term care. Within the next 6 months, Ruth gifts $30,000 to each of their 3 children for future grandchildren college funds. The $90,000 was part of Ruth’s community spouse resource allowance per 461-160- 0580(2). As long as Ruth does not need long-term-care services, assets transferred by Ruth will not be evaluated as possibly disqualifying.