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Our newest Senior Tip:
Gifting Your Personal Residence to an Adult Child
Tip – Under certain circumstances a Medicaid participant may gift their
home to an adult child and qualify for Medicaid without the transfer
penalty period.
This tip outlines an important exception to Medicaid’s transfer penalty rules under Idaho Administrative Procedures Act, which allows parents to transfer their primary residence to an adult child without incurring a period of ineligibility under specific circumstances.
Under standard Medicaid rules, transfers of assets (including real property) for less than fair market value within the lookback period typically result in a period of ineligibility for Medicaid benefits. However, Idaho regulations provide specific exceptions to this penalty, including transfers of the family home to adult children when both of the following qualifications are met:
1. Residency Requirement
The adult son or daughter must have resided in the parent’s home for at least two years immediately before the month the parent entered an assisted-living facility or long-term care facility.
2. Caregiver Requirement
The adult son or daughter must have provided care to the parent that permitted the parent to live at home rather than in an institutional care facility during the qualifying residency period. (IDAPA 16.03.05.292.04)
Key Considerations
• Timing is Critical: The two-year residency period must be immediately preceding the month of institutional placement
• Care Documentation: The level of care provided must be sufficient to have delayed or prevented institutional placement
• Facility Types: The exception applies when the parent enters either assisted living or long-term care facilities
• Burden of Proof: The family should maintain documentation of both the residency and caregiving arrangements
In conclusion, this exception recognizes adult children who have made significant personal sacrifices to serve as caregivers, allowing their parents to remain in their homes longer than would otherwise be possible. The transfer exception preserves the family home for the caregiver child while protecting the parent’s Medicaid eligibility.
Families considering this arrangement should document the caregiving relationship and maintain records of the adult child’s residency to support any future Medicaid application and demonstrate compliance with the regulatory requirements.
View our “Senior’s Guide to a Well-Planned Future” on our website! Packer Elder Care Law – with you for life!
Tom Packer is an Elder Law Attorney serving all Southeast Idaho. As part of his law practice, Tom offers Life Care Planning to deal with the challenges created by long-term illness, disability and incapacity. If you have a question about a Senior’s legal, financial or healthcare needs, please call us.
June 2025