2) Transfer Penalty Period – Full Amount Returned During Application Period

The customer applies for ALTCS in February. The customer transferred a sports car to his son in January. The transfer will result in a penalty of 13 months and 9 days.

To allow his father to qualify for long-term care services, the customer’s son transfers the title of the vehicle back to the customer. The title transfer is effective February 27.

Since the transfer penalty would have begun in February, and the vehicle was returned in the same month, no transfer penalty is applied.