“I heard it was illegal to transfer assets out of someone’s name to get Alabama Medicaid benefits.”
“I heard it was illegal to transfer assets out of someone’s name to get Alabama Medicaid benefits.”
It’s not illegal. There’s nothing illegal about transferring mom’s house, assuming she’s okay with that or that she gave you power of attorney and you’re acting properly.
That’s not illegal.
It’s just that there are consequences to that.
Let me give you an example.
I worked at a firm and in 2006 I left and started my own firm, and I had a 401(k).
I had some options.
(1) I think I could’ve left it there in the 401(k);
(2) I could’ve rolled it over into an IRA; or
(3) I could’ve said, “I’m going to cash it out. Just pay it to me.”
Is that illegal to take my 401(k)?
No.
It’s not illegal.
But there are consequences to it.
There may be 10% penalty and then I’ve got to pay taxes on it.
There are consequences, but it’s not illegal to do that.
Same thing with transferring assets to help qualify for Alabama Medicaid.
We just need to understand the consequences of transferring assets.
If you have any questions…
Feel free to get in touch with us.
You can reach us by phone at 1-205-879-2447.
Of , if you prefer, you can fill out a contact form and we will get in touch with you.
We’d be glad to answer any of your questions and help you figure out your best course of action.
Thanks for reading, and have a great day!