The "5-year look back" period is a crucial aspect of Medicaid planning, particularly concerning eligibility for Medicaid-funded long-term care services. Here’s a breakdown of what it entails:
Definition: The 5-year look back period refers to the time frame that Medicaid examines an applicant's financial transactions to determine if any assets were transferred for less than fair market value (i.e., gifted or transferred) in order to qualify for Medicaid benefits. The purpose is to prevent individuals from transferring assets to others to meet Medicaid's asset eligibility requirements.
Duration: For 2024, the look back period is 5 years. This means Medicaid can review all financial transactions, including gifts and...