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Title 8: Medicaid Page 35 Iowa Department of Health and Human Services Employees’ Manual Chapter D: Resources Transfer of Assets Revised July 10, 2026 Transfers That Do Not Cause a Penalty

Ms. E applies for Medicaid while living in a skilled nursing facility. She has transferred $10,000 to her son. She says her son is disabled, but he is not receiving any disability benefits. The Department refers the son to apply for SSI, because he has no income. Ms. E’s application is approved for other medical services but is pended for facility payments due to the need to determine her son’s disability. If the son does not apply for SSI, the Department determines disability. If the son is not determined to be disabled, transfer of asset penalties are applied.  The applicant or member or the applicant or member’s spouse transfers an asset that would have been exempt as a resource at the time of transfer. Mr. and Mrs. D have $11,000 in total assets in March. On April 14, they gave away $5,000 in certificates of deposit to their daughter. Mrs. D enters a medical institution to stay on April 30. Since the Ds owned total assets of less than $32,532, the minimum protected amount for the community spouse in the month before the month of entry and attribution, the transfer is not for the purpose of qualifying for Medicaid. EXCEPTION: Transfers of a home and surrounding property (including the transfer of a life estate interest only) are not exempt from transfer penalties.  A transfer was made into a trust established solely for the benefit of: • The person’s child or adult child who is blind or disabled, as defined by the Social Security Administration. • A person under 65 years of age who is disabled, as defined by the Social Security Administration.  A transfer made between spouses or to another person for the sole benefit and support of the community spouse.

1. Mr. Q transfers his half of a $25,000 certificate of deposit to his daughter on May 14, 2005, for Mrs. Q’s benefit. Mr. Q then applies for Medicaid on May 20, 2005. On June 1, 2005, he enters a skilled nursing facility. Mr. Q furnishes a statement that the money was transferred because Mrs. Q is handicapped, and the daughter will be handling Mrs. Q’s finances. This transfer does not disqualify Mr. Q for payment of nursing facility services because the transfer was for the benefit of his spouse.