Page 45

Title 8: Medicaid Page 41 Iowa Department of Health and Human Services Employees’ Manual Chapter D: Resources Transfer of Assets Revised September 13, 2024 Rebuttal of Transfer of Assets  The transfer was of an asset that was excluded on the date of transfer and would continue to be excluded even if retained. Property that was excluded as a homestead property is considered an asset for this purpose. If an excluded home is transferred for less than fair market value, the fact that it was excluded on the date of transfer and would continue to be excluded even if retained is not sufficient to establish that the transfer was done for some reason other than to obtain Medicaid eligibility.  The transfer was a gift and a pattern has been established of giving gifts or contributing to a charity.

Mr. Z applies for Medicaid on November 6. He has given his son $500 for Christmas every year since the son was born. Mr. Z shows convincing evidence that he made such gifts to his son every year at Christmas. The presumption that the assets were transferred to qualify for Medicaid is rebutted.  The transfer was in exchange for support, maintenance, or services provided to the applicant or member as part of a binding agreement at the time of transfer. Determine the fair market value of the services received and the length of time the services will be provided.

Mrs. H transferred her savings account of $5,000 to her son in July 1996, pursuant to a written agreement they made in October 1995 for him to provide her care until she went in the nursing home. The $5,000 was determined by the son charging $500 a month for 10 months of care. She rebutted the presumption that the transfer was made to attain eligibility. If services will be provided for the client’s lifetime, use the table of Average Number of Years of Life Remaining under Purchases Considered Transfers for Less Than Fair Market Value to determine if the resources were transferred for less than they are worth. This table comes from the Social Security Administration Office of the Actuary. To determine the total value of support and maintenance for the client, multiply the current market value of the support and maintenance by the figure for average years of life remaining opposite the client’s age. If the client’s age is not on the chart, use the next lowest age on the chart. If the value of the service is equal to or more than the asset, there is no transfer of assets.