A couple who transferred their home to their children while they were still relatively healthy failed to rebut the presumption that the transfer was made to qualify for Medicaid.
In March of 2000, Albert Godown and his wife transferred their residence and commercial property, valued at $500,000, to their children for one dollar. At that time, Mr. Godown needed a walker and used a motorized cart to traverse his property. Following the transfer, Mr. Godown and his wife lived in an apartment on the property and their children lived in the main residence. On July 12, 2001, Mr. Godown suffered a stroke that rendered him unable to care for himself. Mrs. Godown, who is legally blind and afflicted with other ailments, also could not care for him. In August 2001 Mr. Godown applied for Medicaid. The Department of Public Welfare denied the application, concluding that Mr. Godown had failed to rebut the presumption that the property was disposed of to qualify for Medicaid.
Mr. Godown appealed, contending that the property had been transferred to keep it in the family. Because the transfer was made when he was not in need of institutional care, Mr. Godown argued that he is entitled to Medicaid under U.S.C. § 1396p(c)(2)(C), which provides that an individual shall not be ineligible for assistance if he or she can show that the assets 'were transferred exclusively for a purpose other than to qualify for medical assistance . . . .'
The Commonwealth Court of Pennsylvania affirms the Department''s decision. The court notes that when the Godowns transferred the property, both suffered from ailments that could eventually render them in need of institutionalized care. In addition, the transfer of the property left Mr. Godown virtually penniless. 'In light of the Godown's [sic] circumstances,' the court writes, 'it was reasonable for the hearing officer to interpret [the desire to keep the property in the family] to mean precisely that the assets were transferred so that they would not be eroded by medical expenses.'
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