“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 Income Maintenance (IM) Manual section 1040.020.05.
- Investigate any transfer of assets at initial application, annual review, and upon discovery of an unreported asset; see IM Manual section 1040.020.10.
- Establish the date of transfer; see IM Manual section 1040.020.15.
- For transferred assets other than the home, determine if the applicant/participant was eligible with the assets; see IM Manual section 1040.020.20.
- For transferred assets other than the home, determine if the transfer was made with the intent to become eligible; see IM Manual section 1040.020.25.
- Determine if fair and valuable consideration was received; see IM Manual section 1040.020.30.
- Determine if the purchase of an annuity results in an improper transfer of assets penalty; see IM Manual section 1040.020.35.
- Determine the penalty period; see IM Manual section 1040.020.40.
- Inform the applicant/participant of the penalty period and undue hardship exception; see IM Manual section 1040.020.40.20 and 1040.025.00.