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Chapter: 1600 Assets Program: MSSI, SFP 48

4. Transfers where fair compensation is received. An example would be assets used to make a purchase for an applicant or recipient or used to pay (or repay) a valid debt equal to the fair market value of the asset. In order for the debt to be considered a valid debt, it must be a legally enforceable debt. An informal loan will be considered to be a valid debt provided it meets the criteria for a bona fide loan set forth in passage 1640.0560.01 and 1640.0560.02.

5. A transaction in which an individual makes burial arrangements with a funeral director and places funds in a burial trust is considered a purchase.

6. Transfers to the individual's blind or disabled child (adult or minor) or to a trust described in passage 1640.0576.08, established solely for the benefit of the individual's disabled adult child;

7. Transfers to a trust (including a qualified trust for the disabled, as described in passage 1640.0576.08) for the sole benefit of a disabled individual under age 65;

8. Transfers of the individual's income to a qualified income trust (see passages 1840.0110 and 1840.0111;

9. Interspousal transfers made on or after October 1, 1989;

10. Transfers of assets to a third party by the individual applying for nursing home care (ICP, institutionalized MEDS-AD, institutionalized Hospice) or HCBS Programs or by the individual's spouse, if the third party intends to use the funds for the sole benefit of the individual's spouse (see passage 1640.0609.06);

11. Transfers of excluded assets other than homestead or real property excluded from countable assets due to a bona fide effort to sell; and

Note: Transfer of homestead property is allowable if it meets the criteria as set forth in 1640.0609.03.

12. Transfers made by the spouse of an HCBS individual of any of the spouse's individually owned assets. 1640.0609.06 Definition of Disability (MSSI) When an allowable transfer is alleged to have been made to a disabled individual (per policy in 1640.0609.04), you must determine if the individual meets the definition of disability used by the SSI Program.

Disability must be determined according to standard procedures. That is, if the person receives Social Security disability or SSI benefits, he is considered disabled for Medicaid purposes. If he does not, the District Medical Review Team (DMRT) must make an independent determination to evaluate if the individual meets the disability criteria. 1640.0609.07 Definition of “For the Sole Benefit of” (MSSI) In order for the transfer to be considered to be for the sole benefit of the spouse, the individual’s blind or disabled child, or a disabled individual under age 65 (and not be subject to a transfer penalty), there must be a written transfer document which legally binds the parties to a specific course of action and which clearly sets out the conditions under which the transfer was made, as well as who can benefit from the transfer.

The transfer instrument or document must provide that: