This is a continuation of a 10 part series discussing mistakes surrounding Medicaid
What is a Safe Harbor in relation to Medicaid? Congress has given us safe harbors within the Medicaid rules. One of which is an exempted transfer.
An exempted transfer is the ability to transfer assets into a third party, supplemental or special needs trust which is not counted as a gift in certain circumstances. One circumstance would be if you were a child taking care of a disabled parent who would otherwise need Medicaid services. Spouses are not included in this particular exemption.
Your house and real estate could be exempted from being taken in an estate recovery situation if you have proof of a child living with you and taking care of you. Proof can be in the form of an agreement, or physical proof of taking that disabled parent to doctors appointments, cooking and cleaning for them, administering medications, etc.
The important thing to know in reference to this type of exemption, in the State of Colorado, is that there has to be proof of caregiving for a time period of 2 years. So knowing about this exemption, being prepared for it, and having all of the documentation in place is imperative.
If you would like to find out more about this and other mistakes made in reference to Medicaid, go to our YouTube channel, our website at www.Skiptonlaw.com or call us at (720) 440-2774.
We also offer workshops for residents of Colorado covering all sorts of topics including wills, trust, powers of attorney and Medicaid.