Transfers of assets generally raise a red flag when it comes to applying for Medicaid. They can trigger a penalty period, or a period of ineligibility.
The good news is the Connecticut Department of Social Services (DSS) will allow certain types of Medicaid asset transfers. For example, a family caregiver can be compensated for providing care to a loved one if the care they provide is necessary.
The rationale is this: DSS recognizes that when family members pitch in and provide needed care for a loved one, they are helping that person delay or avoid placement in a nursing home.
Making a caregiver agreement
Although your loved one can’t just give away his or her money to qualify for Medicaid, he or she can pay a family member who is providing care without jeopardizing eligibility for Medicaid. An individual must demonstrate a functional need for assistance with one or more activities of daily living. The type of care provided must be spelled out in a caregiver agreement, and certain conditions must be met. Continue reading