Inconsistent Views on Transfers in Preparation for Medicaid Qualification

Transferring assets to qualify for Medicaid may or may not be a successful venture.  The line between valid and invalid transfers may be hard to find:

Cascio v. D’Arcangelo,  No. 09-P-1039 (Mass. Ct. App., March 30, 2010): The court held valid a transfer of property from parents to their daughter, stating that the daughter’s promise to sell the property after her parents’ death constituted consideration.  The court recognized that the transfer played a critical role in meeting the parents’ medicaid qualification goal.

Lizaso v. Lizaso  No. B212749 (Cal. Ct. App., 2nd Dist., Div. 4, March 25, 2010): The court held that a contract to sell a mother’s home to her son in exchange for the son’s mortgage payments was invalid because it was entered into for medicaid purposes. The son did not maintain, care for, or make an investment out of the property.

See ElderLawAnswers, Two Courts Take Differing Views on Transferring Property With Intent to Gain Medicaid Eligibility, April 25, 2010.