Transfers of Property on or After February 8, 2006

PROCEDURE:

STEP 1
Participant declares a transfer of property.

STEP 2
Determine how the transfer was accomplished. If accomplished by setting up a trust or annuity, proceed to step 3. If not, move to step 4.

STEP 3
Submit trust or annuity documents to State Office Program and Policy Unit via IM-14. They will decide:

    • Availability of the trust’s assets.
    • Which transfer policy to apply.

STEP 4
Establish the look-back date, the earliest date a transfer could have been made and still be considered in establishing eligibility. The look-back period is 60 months for all transfers of property occurring on or after February 8, 2006.

STEP 5
Determine the look-back period, the entire period between the look-back date and the date of application. If the transfer occurred within the look-back period, proceed to step 6. If not, no further exploration is necessary.

STEP 6
Determine the facts of the transfer:

    • What property was transferred?
    • What was the value of the property when it was transferred?
    • To whom was the property transferred?
    • What was the client’s equity in the property?

STEP 7

If property was not the claimant’s home, determine whether client would have been eligible for MHABD with the property at the time the transfer occurred. If eligible with the property, no further exploration is necessary. If ineligible with the property, proceed to step 8.

If property was the claimant’s home, determine if property was transferred to:

    • Spouse
    • Child under 21
    • Blind or disabled child
    • Child who lived in the property for at least two years immediately prior to applicant’s institutionalization
    • Sibling with equity interest in the property who lived there for at least a year immediately prior to applicant’s institutionalization

If the property was transferred to one of the above relatives, no further exploration is necessary. If not, proceed to step 8.

STEP 8
Determine whether client received fair market value for the property. If fair market value was received, no further exploration is necessary. If not, proceed with the appropriate choice below:

    • If property was not client’s home, go to Step 9.
    • If property was client’s home, go to Step 10.

STEP 9
Determine the purpose of the transfer.

If the claimant provides convincing evidence that the property was transferred for reasons other than gaining eligibility for assistance, no further exploration is necessary. If not, proceed to step 10.

Transferred property that would cause ineligibility is presumed to have been transferred for the purpose of establishing eligibility, unless the claimant can provide convincing evidence that the transfer was made for some other purpose.

STEP 10
Record pertinent information in FAMIS screen “Adult MA Transfer of Assets”.

STEP 11
A penalty must be applied if the client is or becomes institutionalized.

Institutionalized individual for transfer-of-property purposes is a claimant who has entered a Medicaid certified bed in a nursing facility (NF), ICF-MR, Mental Hospital at least age 65 or under age 21, or entry into the Personal Care Services program.

    • If claimant does not meet the definition of institutionalized, proceed to Step 12.
    • If claimant does meet the definition of institutionalized, determine period of time client will be ineligible for vendor. Apply the penalty immediately. Procedures are outlined in 10.10.2 Determining a Transfer of Resources for MHN. Proceed to Step 12.

IMPORTANT REMINDER: Claimant can still receive “MHA” level of care if otherwise eligible.

STEP 12
The penalty period for transfers that occur on or after February 8, 2006 begin with the first day of the month in which the transfer occurred or the date that the individual would have been eligible for Vendor level of care, whichever is later. Partial month penalties are applied to transfers subject to policy as described in FSD Policy 10.10.2 Determining a Transfer of Resources for MHN.

Whether or not the client meets the Transfer of Property definition of institutionalized, allow FAMIS to determine penalty period.

STEP 13
If institutionalized, FAMIS will notify the claimant of any transfer penalty. Persons not applying for or receiving vendor benefits will be notified that the penalty may be applied if they become institutionalized at a later date.

STEP 14
FAMIS will determine when the penalty period is over and issue appropriate benefits.

NOTE: DO NOT delay applications for non-institutionalized person to make the transfer of property determination. Approve the claimant for non-vendor benefits as eligible, and initiate all necessary inquiries.