Most states have a child caretaker exception to their Medicaid transfer rules.  An elderly parent can transfer their home to an adult child who lived in the home with their parent for the two years prior to that parent entering into a nursing home. Such a transfer of the home would not violate Medicaid look-back rules.  The child must have provided care to that parent that allowed the parent to remain in the home for those two years, instead of the parent needing institutionalized care during that time.  A child, for the purposes of this rule, must either be a biological or adopted child.  Other relatives – stepchildren, grandkids, nephews, etc. – do not qualify. The purpose of this rule is to help keep elderly folks out of a nursing home for as long as possible. 

Model Rules of Professional Conduct provide legal professionals with guidance in respectable practice, proper client relations, and how to navigate ethical grey areas.

A recent court case out of New Jersey, C.F.J. v. Division of Med. Assistance & Health Servs., highlights the duties of a Medicaid office to help applicants obtain required information. Although this case is non-binding, it is a good reminder of how and when a Medicaid office can help applicants with their documents.

Here, the Medicaid applicant, C.F.J., entered into a nursing home and a Medicaid application was submitted on her behalf. After review of her application, the local Medicaid office requested certain documentation from her, including Direct Express debit card statements from August 2009 to August 2014. C.F.J did not remit those statements, and her application was subsequently denied. C.F.J. once again submitted an application, the Direct Express documents were once again requested and unremitted, and her application was denied.