Understanding New York's Medicaid 5-Year Look-Back Rule

Don’t Let the 5-Year Rule Jeopardize Your Medicaid Eligibility

If you or a loved one may need long-term care in New York, understanding the 5-year look-back rule is essential. This Medicaid rule could prevent you from qualifying for benefits—unless you plan ahead.

At Alatsas Law Firm, we help families in Brooklyn and throughout NYC protect their assets while preparing for the future.

What Is the 5-Year Look-Back Rule?

When applying for Medicaid to cover long-term care (like a nursing home), New York will examine your financial transactions from the past five years.

If they find that you’ve given away or transferred assets for less than fair market value during that time, they may impose a penalty period where you’re ineligible for coverage.

What Counts as a Penalized Transfer?

Examples include:

Gifting money to family or friends
Transferring a home without proper planning
Selling assets below market value
Adding someone’s name to a bank account

✅ Even well-meaning gifts to children can create Medicaid penalties.

How to Protect Yourself: Legal Strategies

Medicaid Asset Protection Trust (MAPT): Shields assets from the look-back if set up 5+ years in advance
Spousal Refusal: A legal strategy that may protect the healthy spouse's resources
Spend-down options: Pay off debts, prepay funeral expenses, or invest in exempt assets

Talk to a Brooklyn Medicaid Planning Lawyer

Trying to manage this yourself could lead to serious consequences. Our team creates legal plans that protect your assets and your Medicaid eligibility.

📞 Call (718) 233-2903 or book a free consultation »

Why Choose Us?

Experience. We’ve been proudly serving the community for over three decades—creating lasting relationships with our clients and their families. While every client is unique, our breadth of experience has given us the ability to handle a wide range of legal concerns.
Personal attention. As a small firm, we can provide the one-on-one attention and focus you deserve. You can be assured your satisfaction is our top priority.
Responsiveness. We are committed to keeping you updated as your case progresses and are always happy to answer any questions you may have about what to expect next. We want you to feel confident and in control of your future.
Empathy. Dealing with legal issues affecting your family and finances can be stressful. We understand your concerns and will proactively work to provide you with peace of mind as you move forward.

Frequently Asked Questions

What is the Medicaid "look-back" period?

The Medicaid "look-back" period is a timeframe, typically five years, during which Medicaid reviews your financial transactions to ensure you haven't transferred assets for less than their fair market value to qualify for benefits. Any such transfers can result in a penalty period, delaying your eligibility

How does Medicaid treat income when determining eligibility?

Medicaid has strict income limits that vary by state. Income includes wages, Social Security benefits, pensions, and other sources. If your income exceeds the limit, you may need to spend down the excess on medical expenses or use other planning strategies to qualify.

Can I gift money to my children to qualify for Medicaid?

While gifting money to children is a common strategy, it must be done carefully due to the Medicaid "look-back" period. Any gifts made within five years of applying for Medicaid can result in a penalty period, delaying your eligibility for benefits.

What is a Medicaid-compliant annuity?

A Medicaid-compliant annuity is a financial product that converts a lump sum of money into a stream of income. It must meet specific criteria to be considered exempt from Medicaid's asset calculations, such as being irrevocable, non-transferable, and providing equal payments over the annuity's term.

How can a Medicaid planning attorney help me?

A Medicaid planning attorney can provide expert guidance on navigating the complex rules and regulations of Medicaid. They can help you develop a personalized plan to protect your assets, ensure eligibility, and avoid costly mistakes that could delay or jeopardize your benefits.

Understanding the 5-Year Look-Back Rule for Medicaid in NY