Spousal Transfers and Medicaid Planning for Elderly Couples

Learn how spousal transfers can protect your home and savings when one spouse needs Medicaid. No lookback, no penalty—just smart planning for Korean-American families in New York.

Many Korean-American families are surprised to learn that you don’t have to lose your home or life savings when a spouse needs long-term care. In New York, spousal transfers are one of the most effective (and underused) strategies in Medicaid planning—even in last-minute situations.

Why Spousal Transfers Work

1. Not Subject to the 5-Year Lookback

Unlike gifts to children or trusts, transfers between spouses are exempt from Medicaid’s 5-year lookback. That means you can transfer assets—even just before applying—without incurring penalties.

2. No Limit on Transfers

There is no cap on how much can be transferred from the ill spouse to the healthy spouse. This allows the couple to preserve wealth while ensuring the sick spouse qualifies for Medicaid.

3. Spousal Refusal Option

If the healthy spouse holds more than the allowable resource limit (currently $157,920 in 2025), New York allows “Spousal Refusal”. Medicaid will still approve the ill spouse’s application, while the healthy spouse retains the excess.

🏡 What Can Be Transferred?

• Primary residence (if occupied by the healthy spouse)

• Joint or individual bank accounts

• Investment or retirement accounts (if assignable)

• Life insurance with cash value

• Vehicles and personal property

These transfers can immediately reduce countable assets and secure Medicaid eligibility.

💡 Why This Strategy Is So Powerful

• Preserves the family home and life savings

• Effective even in emergency or crisis planning

• No lookback, no penalty period, no waiting

✍️ The Bottom Line

Spousal transfers are one of the most powerful Medicaid tools available to New York couples. If your spouse may need long-term care, this strategy can help protect your legacy—without spending everything down.

📞 Contact The Law Office of Jin-Wook Kim, P.C.

We help Korean-American and immigrant families plan for Medicaid while preserving what they’ve built. Let’s discuss how spousal transfers and other elder law strategies can work for your family.

Spousal Transfers and Medicaid Planning for Elderly Couples