How does the Medicaid look-back affect selling a parent's house in Pennsylvania?

The Pennsylvania Department of Human Services says any asset that was transferred, sold or given away within the past 60 months must be reviewed by the county assistance office when a person applies for Medicaid long-term care. The county looks at whether fair market value was received. The look-back is counted from the date of the application and admission to care.

Selling a parent's house to a buyer at market price for cash is generally a sale for value. Giving the house to a child, or selling it for much less than it is worth, is a transfer without full value. DHS explains that an uncompensated transfer can create a penalty period, figured by dividing the value transferred by the average daily private pay rate for care.

The penalty period begins on the date the person is otherwise eligible for Medicaid long-term care, according to the page. That means a gift made years earlier can still matter if it falls inside the 60 months. Keep records of every sale, gift and payment. Ask the county assistance office what documents it wants.

The rules have exceptions and details this page does not cover. An elder law attorney can look at your family's facts before anyone signs a deed. This page is general information and not legal advice or tax advice.

A sale to a third-party buyer for cash can be documented simply, which helps if records are reviewed later. A cash sale to Kaizen Home Buyers skips the repair list and the agent commission. The purchase is as-is. We can give you an offer within 24 hours and close in 14 to 30 days, or later if you need time. Our phone is 267-329-0084.