five year law for transfer of property

newmand · Joined: 07 May 2009 Posts: 3 2.20 Dollars($)

I understand that if may mother is elderly that property can be transferred to another person but there is a five year waiting period to actually own property. How is this accomplished.

gmakerley · Posted: Thu May 07, 2009 9:14 am Post subject:

is this a state law you are citing? where did you learn this information? was the source trustworthy?

if you can elaborate, that might assist someone here to provide some direction.

newmand · Joined: 07 May 2009 Posts: 3 2.20 Dollars($)

this is a state law and is common knowledge. the five year waiting period is so that when a parent goes to a nursing home property can't be transferred immediately. the parent goes to nursing home and has no liquid assets to pay for stay so then social security is surrendered to nursing home and state pays the balance under I believe Medicare. without 5 year period person could lose home to state to pay for stay at nursing home until money is gone.

gmakerley · Posted: Thu May 07, 2009 9:54 am Post subject:

thanks

jheard · Posted: Thu May 07, 2009 11:40 am Post subject:

There is no waiting period to take possession of property. Once the deed is delivered to the grantee, the transfer is effective.

What you are referring to is a 5 year rule for asset transfers to qualify for medicare. You can only qualify for medicare if you are poor. If you have a house worth several hundred thousand dollars, you are not poor. Some people try to cheat and transfer the house to a child to make it fraudulently appear as if the person is poor (a "fraudulent transfer").

Medicare will go back 5 years and presume any such transfer is fraudulent. A fraudulent transfer can be voided by a court and will still be counted by medicare as an asset to determine if you are poor.

Guest

thank you

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