This is another question that’s started cropping up lately in client meetings. We’ve had many clients come in under the impression that the look back period for transfer of assets under the Medicaid rules is now seven years. Much to their relief, this is not the case.
The last change related to an increase in the look back period came in 2005 with the Deficit Reduction Act. Provisions in that Federal law required the look back period to move from three years to five years for all transfers, beginning in 2007. That transition was not fully implemented until 2012. Which is to say, changes to the look back period don’t happen overnight.
So don’t fret. If you hear someone say the look back period is seven years, let them know they’ve obtained some incorrect information, and tell them to consult with an Elder Law attorney familiar with Medicaid and the look back period before they make a mistake.