Adult Medicaid Manual MA-2240 TRANSFER OF ASSETS

VII. ALLOWABLE TRANSFERS (NON-TRUSTS

Certain transfers are allowed. DO NOT apply a sanction to the following transfers.

A. Compensated Transfer

Real or personal property or liquid assets or income that are transferred or exchanged in return for money or any other tangible object, service, or benefit that is equal to or greater than the equity of the transferred asset is a compensated transfer. Refer to IX. below, to evaluate transfers that may or may not be allowed.

REVISED 02/01/08 – CHANGE NO. 07-08

(VII.A.)

Some transfers that are adequately compensated may still be non-allowable transfers because of other requirements (e.g. annuities, purchases of life estates, etc.) and should be evaluated for a possible sanction.

B. Transfer of the Homesite

1. When evaluating for transfers, the homesite is defined as any property in which the a/r or financially responsible person has an ownership interest and

a. Is used as his principal place of residence or the principal place of residence of his spouse or a dependent relative, or

b. Was used as the principal place of residence by the a/r, his spouse or dependent relative during the lookback period or

c. He intends to return to it or intended to return to it during the lookback period.

Once ownership is established by the a/r or financially responsible person in a new principal place of residence, even if it occurs on or after the lookback date, the former principal place of residence becomes non-homesite property.

Refer to MA-2230, Financial Resources, for the definition of the homesite and contiguous property and for policy used to determine asset eligibility.

2. Evaluate the transfer of a homesite that was made income producing as a non-allowable transfer. Transferring the homesite after it has been made income producing is allowable only if it is transferred to a specified person as indicated in VII.B.3. below.

3. Transfer of the homesite without receiving compensation of equivalent value is an allowable transfer only when it is transferred to one of the following:

a. Legal spouse, or

b. Natural, adopted, or step child under 21 at time of transfer, or

c. Blind/disabled (determined by SSA) child of any age, or

d. Sibling who:

(1) Is a co-owner of the home and

(2) Has been residing in the home for a period of at least one year immediately before the a/r entered a nursing facility or requests CAP or PACE.

e. Natural, adopted, or step child(ren) age 21 or over who:

REISSUED 11/01/11 - CHANGE NO. 17-11

(VII.B.3.e.)

(1) Resided in the home for at least two years immediately before the a/r entered a nursing facility or requests CAP or PACE, and

(2) Provided care to the a/r to permit him to live at home rather than in a nursing facility throughout the 2 year period, and

(3) Provides documentation that the adult child(ren) resided in the home during the two years, and

(4) Provides documentation that the adult child(ren) provided necessary care.

For example, four children rotate months living with and caring for their mother in her home. They have taken turns doing this for three years when the mother must to go into a nursing home. The mother transfers her home to her four children who have taken turns living with and taking care of her. This is an acceptable transfer.

C. Transfer to the Legal Spouse or Blind/Disabled Child

1. Any resource or income transferred (in addition to the transfer of the homesite described above) to the legal spouse or blind/disabled child of any age is allowable.

2. The blind/disabled child must have been determined blind/disabled according to SSA standards.