Even when someone is about to enter the nursing home, it is still possible to preserve half of their assets while qualifying for Medicaid. One of the last resort tactics we use is the gift and loan technique known as “half and half.”
Here is an example of how it works:
It is important to document the loan with a properly executed promissory note with the applicable interest; otherwise, New York will not consider it to be a loan. The Promissory Note will need to be presented during the application process to prove that the transfer was not a gift but a loan. Read more about how a Note Payable can be used to qualify for Medicaid.
It is also important to get an opinion letter from an attorney advising of the legality of any particular Medicaid transfer technique. It would be unwise to attempt this advanced technique without the assistance and support of qualified legal counsel.