012: Medicaid's 5-Year Lookback Rule Explained: Protecting Your Family's Assets from Penalty Periods

In this episode, Cary Moss breaks down one of the most misunderstood rules in Florida elder law — the five-year Medicaid lookback period. Families are constantly caught off guard by this rule, making costly mistakes like transferring assets to children or adding names to property deeds, only to discover these moves can trigger serious penalties when it comes time to apply for Medicaid. Cary walks through how penalty periods are calculated, which transfers are exempt, and how tools like personal care contracts can protect a family's assets while staying fully compliant. She also tackles tricky real-world scenarios — from grandparents paying college tuition to families compensating a child for in-home caregiving — and explains how proper documentation can mean the difference between approval and denial. Don't let a lack of planning cost your family everything — this episode could save you thousands. In this episode, you will hear: Why transferring assets to children or a spouse rarely works the way families expect How Medicaid calculates the penalty period for uncompensated transfers The difference between gifts that raise red flags and those that can be explained away Real exemptions families don't know about, including homestead property transfers How personal care contracts protect families who pay a child for in-home caregiving Why tithing, wedding gifts, and college tuition aren't automatically disqualifying The importance of affidavits in overcoming the presumption of Medicaid eligibility planning Resources from this Episode Sawyer Support: https://sawyerandsawyerpa.com/sawyer-support/ Medicaid Planning: https://sawyerandsawyerpa.com/long-term-care/ Follow and Review: We'd love for you to follow us if you haven't yet. Click that purple '+' in the top right corner of your Apple Podcasts app. We'd love it even more if you could drop a review or 5-star rating over on Apple Podcasts. Simply select "Ratings and Reviews" and "Write a Review" then a quick line with your favorite part of the episode. It only takes a second and it helps spread the word about the podcast. Episode Credits If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com Let them know we sent you.