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Title 8: Medicaid Page 80 Iowa Department of Health and Human Services Employees’ Manual Chapter D: Resources General Non-MAGI-Related Resource Policies Revised September 13, 2024 Disputed Ownership

Mrs. N and Mr. F, who are brother and sister, jointly own a bank account. Mrs. N has her name on the account to handle Mr. F’s business, since he is not able to do so. Mr. F is not a Medicaid applicant or recipient. Mrs. N applies for Medicaid on October 11. She lists the account, which has $6,000 as of October 1. She proves that all the deposits were Mr. F’s and she did not use any of the withdrawals. She changes the name on the account to show the true ownership. This account is not countable to Mrs. N. Determining the Value of a Resource Legal reference: 20 CFR 416.1201 Policy: The countable value of a resource is the equity value. The equity value is the current fair market value minus any legal debt on the item. To be considered a debt against the resource, the debt must be legally recognized as binding on the resource’s owner. The current fair market value is the amount an item can be sold for on the open market. Procedure: If a client is trying to sell property:  The client should provide verification of the fair market value of the property.  If the client provides verification that the client has tried to sell the property at the fair market value and it did not sell, consider a lower amount to be fair market value as long as it seems reasonable.  Use the prudent-person concept when determining if the lesser fair market value amount is reasonable. When property is sold at an auction, the current fair market value is considered to be the highest bid, as long as the client has provided verification that both:  Attempts to sell the property at fair market value have been unsuccessful; and  The auction was advertised to the public. If either of these criteria has not been met, assess a transfer of assets penalty for the difference between the fair market value and what the property sold for.