New Jersey's MLTSS application process asks for a full five years of transfer history, and it's explicit that an unexplained or undocumented transfer will simply be treated as a gift. The state describes the resulting transfer penalty as a stretch of time during which the applicant isn't eligible for Medicaid, calculated from the value of anything treated as a gift — including property sold for less than fair market value (2026 MLTSS application guidance).
That review isn't limited to nursing-home applicants, either. The underlying Medicaid Only Manual applies the transfer-of-assets rule to anyone receiving, seeking, or expecting institutional-level services — which explicitly includes people getting services through a Section 1915(c) home- and community-care waiver. A family planning for care at home can't assume they're outside the reach of this rule (N.J.A.C. 10:71-4.10).
In practice, New Jersey's guidance asks applicants to document any house, car, or similar asset sold or transferred in the past five years — the closing statement, who currently owns it if that's known, and proof of where the sale proceeds ended up. Keeping that paperwork organized ahead of time is a real, practical step, not just an administrative box to check (2026 MLTSS transfer documentation).