Duncan Legal, PC | Helping people solve life’s puzzles.
At Duncan Legal, we’ve seen it time and again: a loved one needs long-term care, and the family is suddenly forced to navigate complex Medicaid rules under pressure. When that happens, choices are limited—and even well-meaning actions can lead to costly consequences.
One of the most misunderstood (and overlooked) aspects of Medicaid eligibility is the five-year look-back rule—a rule that can either protect your family’s financial stability or jeopardize it entirely. Here’s what you need to know.
What Is the Medicaid Look-Back Rule?
When someone applies for long-term care Medicaid—the benefit that helps cover the high cost of nursing home or in-home care—the government reviews financial transactions made in the five years prior to the application. This period is called the look-back period.
During this time, Medicaid evaluates whether any assets were transferred or sold for less than fair market value. If they were, it could trigger a penalty period, where Medicaid will not pay for your care. That delay could result in thousands of dollars in uncovered expenses—placing a heavy burden on your loved ones.
Common Mistakes That Can Trigger a Penalty
Because Medicaid laws vary by state and are extremely specific, many Colorado families unintentionally make mistakes that lead to denials or delays in coverage. Some of the most common include:
- Gifting money to children or grandchildren, even for birthdays or weddings
- Adding a family member to the title of your home without proper compensation
- Selling property below market value to keep it in the family
- Making charitable donations shortly before applying
- Helping someone with a down payment or co-signing a loan without formal agreements
While these actions may seem harmless—or even generous—they are often treated as uncompensated transfers under Medicaid rules, and they can affect your eligibility at a time when care is urgently needed.
Why It Pays to Plan Early
The best time to prepare for long-term care is before a crisis hits—while you’re still healthy and independent. With proactive planning, you can access legal tools that help you:
- Protect your home and savings
- Avoid penalties
- Qualify for Medicaid when the time comes
At Duncan Legal, we regularly assist clients with:
- Medicaid Asset Protection Trusts (MAPTs)
- Caregiver Agreements that formalize family support
- Custom Spend-Down Strategies designed to preserve eligibility
Even if you’re already inside the five-year window, there may still be ways to minimize penalties and preserve some of what you’ve built. But those options become fewer the longer you wait.
Our Approach at Duncan Legal
The Medicaid look-back rule is a major roadblock for many families—but it doesn’t have to be. With proper guidance and thoughtful preparation, you can stay in control and ensure your future care doesn’t come at the expense of your legacy.
At Duncan Legal, we’re here to guide you through the process—step by step—with clarity, compassion, and the legal knowledge you can trust.
Visit Us: 6436 S Racine Cir, Ste 227, Centennial, CO 80111
Call Us: (303) 394-2358
Learn More: www.duncanlegal.com
Duncan Legal, PC
Helping people solve life’s puzzles.
