Is it OK to give away my assets? What are “penalty periods?”

Gift box Beware that if you give away assets, you could be creating periods of ineligibility for Medicaid benefits. In Connecticut, for every $13,512 you give away, you are ineligible for Medicaid benefits for one month.

For example, a gift of $50,000 results in a 3.7 month penalty period ($50,000 divided by $13,512 = 3.7 months).

Penalty periods start to run when a person would otherwise be eligible for Medicaid, not on the date that the gift is made.

Click here to watch Brendan explain penalty periods.

The bottom line: the sooner you make a gift and the later you apply for Medicaid, the better. For people in ill health or with very few assets, it might not be practicable, as a result of the federal law changes, to make any gifts.

For more about transfers, check out:

How Transfers Affect Medicaid Eligibility

Be Careful: Transferring Assets to Qualify for Medicaid in CT May Backfire

Client Reviews
“I cannot find the words to thank all of you properly for your hard work and perseverance. It is a great relief to have gotten a just and proper ruling from the court. All of you have shown great professionalism and concern for the issues I brought before you.” J.G., Greensboro, GA
“All dealings have been excellent. Very professional organization. Great explanations of our options related to preparing a will. Clear, concise, great guidance and not trying to "sell us" on something we do not need. Administrative folks were super. All of our related paperwork was clearly tagged with what we needed to provide/sign/read /etc. Made things easy. Nice work.” L.G., Berlin, CT
“We loved working with your firm and really trust the advice. You have a well-deserved reputation and it was nice to check off a number of things that had been on our To-Do list. Although it's hard to make the time to take care of some of these matters, it is a great relief when you do so. I would definitely recommend your firm to anyone in need of the services that you provide.” L.M., Simsbury, CT
Everyone at the firm were consummate professionals. We felt completely comfortable with their guidance and were impressed by their compassion and commitment to us. R.H., Canton, CT
The attorney who served us was kind, thorough, and very responsive. He pointed out some issues in my mother's documents that could have been problematic down the road. After my mother passed, everything was as seamless as possible - a true gift at a time when life and death decisions were being made and emotions were overwhelming. J.B., Cromwell, CT
Great service, was on top of everything. I'm glad they were there to help us though a tough time. J.M., Farmington, CT
Members of: