Is it illegal to transfer assets for the purpose of obtaining Medicaid benefits?
No. For many years, it was a crime to intentionally transfer assets, or spend down, to meet Medicaid eligibility requirements. Later, Congress passed a law targeting elder law attorneys advising clients, rather than the clients themselves. In 1998, Attorney General Janet Reno declared that the Justice Department would not enforce the law as it violated the attorneys’ right to free speech. Some federal courts have supported that position. Thus, there is currently no risk of criminal prosecution under the law.
Related Questions
- If a client is entering a nursing home, can they transfer assets in order to qualify for Medicaid? Can they gift a home to a child or must they sell it?
- May a Candidate or Political Committee transfer assets for the purpose of earning interest?
- Is it illegal to transfer assets for the purpose of obtaining Medicaid benefits?
