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Title 8: Medicaid Page 29 Iowa Department of Health and Human Services Employees’ Manual Chapter D: Resources Transfer of Assets Revised July 10, 2026

Transfer of Assets Legal reference: 441 IAC 75.23(249A), P. L. 100-360 When an individual attest to transferring assets on an application, Electronic Data sources will be requested to check for a potential transfer for less than fair market value. “Transfer of assets” occurs when a person transfers resources or countable income for less than fair market value in order to become eligible or maintain eligibility for Medicaid. Transfer of assets includes, but is not limited to:  Giving away property to someone else.  Establishing a trust for the benefit of someone else.  Removing a name from an asset.  Disclaiming an inheritance on or after July 1, 2000.  Failure to “take” against a deceased spouse’s will on or after July 1, 2000.  Reducing ownership interest in an asset.  Transferring or disclaiming the right to income not yet received.  Use of funds to purchase some annuities.  Use of funds to purchase some promissory notes, loans, and mortgages.  Use of funds to purchase some life estates. See Determining the Value of a Resource when establishing the fair market value or equity value of a resource. Assume that a person who transfers assets does so to become eligible for Medicaid unless they prove otherwise. See Rebuttal of Transfer of Assets. Some transfers do not result in a penalty. These are listed under Transfers That Do Not a Cause Penalty. The penalty for transferring assets depends upon:  The date the transfer occurred,  To whom the assets were transferred, and  How much the assets were worth at the time of the transfer. The transfer of assets penalty affects Medicaid coverage of certain long-term care services. See Penalties for Transferring Assets.