The Florida Department of Children and Families finally updated the transfer penalty divisor effective March 1, 2021 to $9,703. The transfer penalty divisor had not been updated previously since July, 2019, so this is a welcome change as the cost of nursing home stay in Florida has increased since 2019.
So what is the transfer penalty divisor, anyway?
The transfer penalty divisor is supposed to represent the average cost of a nursing home stay per month in Florida. If you give money away within 5 years of applying for long-term care Medicaid, the State created a penalty that disqualifies you from Medicaid for a certain length of time. The calculation is created by dividing the amount given/transferred away by the penalty divisor. I have a great deal more about Medicaid and the transfer penalty on this webpage if you want to learn more
What if Mom/Dad gave money away before applying for Medicaid?
If this happened, you need to seek a good elder law attorney to assist you/your family. There are ways to "cure" gifting but you will need expert legal advice.
If you want to read more:
- Florida Irrevocable Asset Protection Trusts
- Medicaid and Spend-Down Planning in Florida
- My Elder Just Went to the Nursing Home - What Should I Do Next?
- Will Medicaid Take My Home if I go into the nursing home in Florida?