Medicaid denied because of transfer of asset within 5 years; can I argue this?
In May of 2017 when my dad was well he transferred my car to my name from his name via "gifted transfer to child". This car was purchased using college savings and their savings. They NEVER drove it, NEVER paid for maintenance. Its worth less than $5K now, but Medicaid denied my dad because of this transfer. I think this is unreasonable because the car was purchased before I was an adult and it wasn't an asset they actually used or enjoyed or could sell without putting me in an awful spot of paying for a new car myself. Is it possible to argue this with Medicaid (South Dakota)? Keep in mind, we had no idea in May of 2017 that their finances would dwindle so fast. I thought we had more time before I would need to get my dad on state pay. This was to protect an asset intended for me only that my parents always intended to gift me anyways.
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If your Dad paid outright for the car, or made payments and registered it in his name and insurance in his name, he was the owner. Insurance looked at you as the main driver. In NJ by putting the transfer as a "gift" sales tax doesn't have to be paid.
You may want to ask how that transfer effected Dads application. You say the car is worth less than 5K. Does that mean Medicaid would allow you to pay that amount back so the application will go thru?
I know Medicaid has strict rules, but at the same time, their offices have been known to make mistakes. It doesn't hurt to ask about what your family's options are.
The car - like a house - shows a transfer quickly as it’s super easy 1 button match up by name search of tax assessor records.
But banking lookback is more complicated. Was any of the college $ moved from an account in his SS# to yours? If it was in a UTMA it might be in an your name UTMA account but the reported SS # belonged to the elder. If so, that’s going to surface as a penalty inquiry as well.
Please, please, Please think if there’s other issues that will surface.
If it was a much older car, like over a decade old, you might try to have the car value reduced by auto appraisal so it’s not whatever Kelley a blue book has it at. But it’s too new for that.
Or you wait 5 full years till dad applies for Medicaid, so August 2019 for a July, 2014 ineligible transfer. Dad stays at home or moves in with you and family caregives for free or uses his SS to private pay for correctly hired caregivers. I’m assuming his care needs are beyond this being feasible.
So Transfer penalty has to be gotten through. How many days is it?
If it has a transfer penalty value of 8k-5k that’s maybe a month of NH costs. Find a way to private pay for however # of days long the penalty period is. Ask the facility if they will be ok on being paid the lower Medicaid room & board day rate rather than a usually higher private pay rate. Get it paid so days penalized are over. Then he’ll be eligible for Medicaid.
Not to sound harsh but it needs to be dealt with soon as the NH needs to be assured of payment otherwise they will issue a 30 Day Notice. He cannot stay as a Medicaid Pending resident as the facility gets the ineligible due to transfer penalty notice as well. You don’t want to get him at the Notice sent point as he’ll be toast on ever getting into another facility (it will be in his Medicaid history) and if payment isn’t worked out APS can be contacted to do a review of his status which usually means APS will ask for him to be made an emergency ward of the state with guardian appointed.
Actually I am surprised that your parents were denied Medicaid. Usually in other States Medicaid would see the value of the gifted car and deduct that amount from the cost of care, thus Medicaid wouldn't begin after a certain number of months.