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Title 8: Medicaid Page 36 Iowa Department of Health and Human Services Employees’ Manual Chapter D: Resources Transfer of Assets Revised September 13, 2024 Transfers That Do Not Cause a Penalty

2. Mr. W transfers his car, valued at $25,000, to Mrs. W while living at home. Mr. W applies for Medicaid. This is not a disqualifying transfer, since the car was transferred to the spouse, and the spouse did not transfer it.  A transfer is made in response to a court order that the institutionalized spouse provide support for the community spouse, and the assets are transferred for: • The support of the community spouse, or • The support of a minor or dependent child, dependent parent, or dependent sibling of the institutionalized spouse or community spouse who lives with the community spouse.

When Mr. P enters a nursing facility, there is a court order stating that Mr. P should transfer $10,000 to First National Bank for the support of his son, Pat, who lives with Mrs. P. Since Pat lives with Mrs. P, and there is a court order requiring this transfer, it is not a disqualifying transfer. Mr. P is eligible for payment for nursing facility services.  The transfer results in denial of eligibility that causes an undue hardship to the applicant or member. Undue hardship exists only when all of the following conditions are met: • Application of the transfer of asset penalty would deprive the applicant or member of food, clothing, shelter, medical care, or other necessities of life, such that the applicant’s or member’s health or life would be endangered. • The client who transferred the resource or the client’s spouse has exhausted all means to recover the resource, including legal remedies and consultation with an attorney. • The client’s remaining available resources (after the attribution for the community spouse) are less than the monthly statewide average cost of nursing facility services to a private pay resident, counting the value of all resources except for:  The home, if occupied by a dependent relative or if a licensed physician verifies that the person is expected to return home.  Household goods.  A vehicle required by the applicant or member for transportation.  Funds for burial of $4,000 or less.