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determined blind under 7 AAC 40.140(a) or disabled under 7 AAC 40.170(a); or

(5) to a special needs trust established under 7 AAC 100.612 for the sole benefit of an applicant or recipient who is under 65 years of age and who is blind under 7 AAC 40.140(a) or disabled under 7 AAC 40.170(a). (m) To verify that a transfer of assets under (k) and ( l) of this section is for the sole benefit of an individual’s spouse or child, or for the sole benefit of an applicant or recipient who is blind or disabled, the transferor must provide the department with documentation legally binding the transferor and transferee to a specified course of action and identifying the beneficiary of the assets. (n) If an asset is jointly held by an individual and another person, the asset will be considered transferred by the individual when the individual takes any action that reduces or eliminates the individual’s ownership or control of the asset. (o) Except as provided in (p) of this section, a transfer of asset for less than fair market value occurs if an individual takes an action that prevents the receipt of an asset to which the individual or the individual’s spouse is entitled or if an individual fails to take an action that makes an asset available to the individual, including

(1) irrevocably waiving pension income;

(2) waiving or disclaiming the right to an inheritance;

(3) rejecting or not accessing tort or personal injury settlement proceeds;

(4) except as provided in 7 AAC 100.514 and 7 AAC 100.604 — 7 AAC 100.619, agreeing to the diversion of tort or personal injury settlement proceeds into a trust, annuity, or similar device that results in those proceeds becoming an excluded resource or unavailable to the individual; and

(5) refusing to seek enforcement of a court-ordered judgment, including child support or spousal support. (p) Failure to take action that makes an asset available as described in (o) of this section is not a transfer of assets for less than fair market value if the department determines that the

(1) transferor cannot afford to take the necessary action to obtain the asset; or

(2) cost of obtaining the asset is equal to or greater than the asset’s worth. (q) The penalty for transferring an asset for less than fair market value is ineligibility for long-term care services for the duration of the penalty period determined under this section. (r) If an applicant or recipient disposes of an asset for less than fair market value, the department will reduce its determination of uncompensated value under (d) and (e) of this section if the applicant or recipient provides evidence satisfactory to the department that

(1) the physical or legal condition or market value of the real property at the time of