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1277 (07/2026) Chapter 8: Examples • Chapter 8: Examples Example 6: Transfer with potential Medicaid need Dorothy and her spouse Tom apply for medical benefits because Dorothy is in need of long-term care. In the resource assessment process, it is determined that Tom can keep the family home and $175,000 in assets; Dorothy is determined eligible for long- term care. Within the next 6 months, Tom’s health also deteriorates and is placed in a nursing facility. Tom gifts $50,000 to each of their 3 children for future grandchildren college funds. Tom gifts the family home to their 4th child, spends down the remaining $25,000 paying privately for care, and then applies for medical benefits. These transfers are all disqualifying, because although the assets were Tom’s as a community spouse, when Tom became an applicant for medical benefits, the transfers must be evaluated. Tom was aware of his need for long-term care and could anticipate his need for medical benefits when he transferred assets to his children. Although Tom had other purposes for making gifts to his children, Medicaid eligibility was a consideration. Tom would not have transferred these assets if he did not expect to become eligible for medical benefits. Example 7: Transfer with potential Medicaid need Charles and his spouse Penelope apply for medical benefits because Charles is in an assisted living facility. In the resource assessment process, it is determined that Penelope, who receives care and resides in the same assisted living facility, can keep $50,000 in assets; Charles is determined eligible for long-term care. Within the next 4 months, Penelope’s favorite sister passes away and wills Penelope $100,000. Penelope gifts the $100,000 to their daughter Amber to begin a restaurant business. Penelope spends down the remaining $50,000 paying privately for care, and then applies for medical benefits within 7 months. This transfer is disqualifying. Although 461-140-0242 allows the community spouse to transfer their assets as determined in the resource assessment, a transfer of these assets could be disqualifying if the community spouse later needs long-term care services. Also, while not relevant to the decision that this transfer is disqualifying, the $100,000 was not part of Penelope’s community spouse resource allowance. She received this asset subsequent to the resource assessment. Penelope was aware of her need for long-term care and could anticipate the need for medical benefits when she transferred this gift to Amber. Although Penelope had another purpose for making the gift, Medicaid eligibility was a consideration. Penelope would not have transferred this asset if she did not expect to become eligible for medical benefits. OSIPM Calculating the disqualification period