Transfer to Special Needs Trust Allowed for Over-65 Medicaid Applicant

The Tennessee Department of Human Services found that 92-year-old Ruby Beach made some improper transfers during the look-back period, and assessed a 14.7 month ineligibility period for Medicaid benefits. One of these transfers was a $5,000 transfer into a pooled special needs trust.

In Beach v. State of Tennessee Department of Human Services, the Chancery Court of Tennessee reversed the Department’s determination in relation to the transfer to the special needs trust. The court found that the legislature did not intend to limit the transfer penalty exemption for transfers to special needs trusts to those who are under 65. If the legislature had intended to do so, it would have explicitly specified the age limitation. Thus, Ms. Beach’s transfer to the special needs trust is exempt from transfer penalties.

See Tenn. Court Allows Transfer Into Pooled Trust by Over-65 Medicaid Applicant, ElderLawAnswers, Oct. 4, 2010.