1040.000.00 Transfers of Property

1040.020.20 Eligible With the Property

IM-98 December 3, 2012

Determine whether the applicant/participant was eligible with the assets at the time of the transfer. If the applicant/participant is ineligible with the assets, the transfer of assets must be reviewed to determine if fair and adequate consideration was received in exchange for the assets. If the applicant/participant is eligible with the assets, the transfer of assets does NOT cause ineligibility under the transfer provision.

EXCEPTION: If the assets transferred were the applicant/participant’s home, there may be a transfer penalty. Transfer of the home to persons other than those noted in IM Manual section 1040.010.00 General Provisions, is considered an improper transfer of assets. A transfer of the home to other persons must be explored to determine if fair and valuable consideration was received.

EXAMPLE:  Mr. Meeks owns his home that is valued at $40,000 with no debt. Mr. Meeks has been a resident of a vendor nursing home for the past 26 months. Mr. Meeks decides to ‘sell’ the home to his niece for $10,000. The uncompensated value of $30,000 must be evaluated in terms of a transfer using the nursing facility private pay rate.