What Transfers Does New Jersey Consider to Be Exempt from Medicaid Transfer Rules? (Part 2)

We talked about the transfers of the home that are exempt from New Jersey’s Medicaid penalty but what about assets other than the home?  The following transfers are also exempt:

1.            Assets transferred to the spouse or for the benefit of the spouse as long as the spouse didn’t then transfer them to someone else.  To be for “the sole benefit of”, the funds must be transferred to a legally binding trust created by a document providing that the funds are solely for the benefit of the spouse.

2.            Assets transferred to the Medicaid applicant’s child who is blind or permanently and totally. A determination of disability by Social Security will satisfy this requirement.  Another alternative is to be evaluated by the Disability Review Section of New Jersey’s Division of Medical Assistance and Health Services. This transfer can be outright to the child or to a trust.  The trust must provide that the funds be distributed to the disabled individual on an actuarial sound basis over his/her lifetime.