Applying for Medicaid - Transferring Assets to the Well Spouse

Saturday, June 6, 2026

   It can be very important to transfer certain assets from the ill spouse to the well spouse before an application for Medicaid is made for the ill spouse.

   It can also be important to take some things out of trust, to modify some trusts, or even to dissolve some trusts before an application for Medicaid is made for an ill spouse.

   Doing this can minimize the amount that must be spent before the ill spouse qualifies for Medicaid in many cases.

   Doing this may also minimize the amount that the State can claw back from the estate of the well spouse after he or she dies, in order to pay for the costs of care provided by the State through Medicaid.

   A skillful elder law lawyer can advise on the pros and cons of various transfers, and can potentially save both a great deal of stress, and a great deal of money which can benefit the well spouse - who often really needs the money.

   Timing can be of the essence, however, as often this needs to be done, or can be done most efficiently, and most cheaply, if it is done while both spouses still have the necessary mental capabilities.

   Even after one spouse has started down the path toward incapacity, however, there is a great deal that can be done, although timing is of the essence, since more can be done earlier in this journey than can be done later.