“Transfer” is the act of changing the legal title or other right of ownership to another person. An “improper transfer” means a transfer on or any time after the look-back date, of a legal or equitable interest in a resource for less than fair market value for the purpose of qualifying for MO HealthNet benefits, a greater amount of MO HealthNet benefits, or for the purpose of avoiding the utilization of the resource to meet medical needs or other living expenses. To determine if an improper transfer of assets occurred and if it results in a period of ineligibility known as the penalty period:
- Establish the look-back date; see 1040.020.05 Establishing the Look-Back Date.
- Investigate any transfer of assets at initial application, annual review, and upon discovery of an unreported asset; see 1040.020.10 Investigation of Assets Transfer.
- Establish the date of transfer; see 1040.020.15 Establishing Date of Transfer.
- For transferred assets other than the home, determine if the applicant/participant was eligible with the assets; see 1040.020.20 Eligible With the Property.
- For transferred assets other than the home, determine if the transfer was made with the intent to become eligible; see 1040.020.25 Transfer to Establish Eligibility.
- Determine if fair and valuable consideration was received; see 1040.020.30 Determining Fair and Valuable Consideration.
- Determine if the purchase of an annuity results in an improper transfer of assets penalty; see 1040.020.35 Annuities Resulting in a Transfer of Property.
- Determine the penalty period; see 1040.020.40 Determining the Penalty Period.
- Inform the applicant/participant of the penalty period and undue hardship exception; see 1040.020.40.20 Dispute of Improper Transfer of Assets Penalty and 1040.025.00 Notice Requirements.