What Transfers Does New Jersey Consider to Be Exempt from Medicaid Transfer Penalty Rules? (Part 1)

Not all transfers are subject to a transfer penalty.  The home in many ways gets special status, including when it comes to transfer rules.  The following transfer of the applicant’s home is exempt if made to:

1.            The Medicaid applicant’s spouse

2.            A child of the Medicaid applicant under age 21 or blind or totally and permanently disabled.

3.            A sibling of the Medicaid applicant who had an equity interest in the home before the transfer and was living there for at least one year before institutionalization.

4.            A child of the Medicaid applicant who resided in the home for at least 2 years immediately before the applicant went to the nursing home and who provided care such that if it had not been provided the applicant would have needed nursing home care.  The care must be that which requires “special attention”, rather than personal support activities and “must have been essential to the health and safety of the individual and consisted of activities such as, but not limited to, supervision of medication, monitoring of nutritional status, and insuring the safety of the individual.”   The State scrutinizes this exception closely.  Proof of the child’s residence in the home by tax return, official mail going there is needed.  Also, a certification from a medical professional as to the care needed over the 2 year period is also a requirement as well as the actual care provided by the child.