Page 78

Official source

This provision applies to individuals who apply for Medicaid on and after November 1, 2009, and for these individuals, any subsequent redeterminations that occur as the result of seeking LTC services as well as the annual scheduled redeterminations. 2640.10.15.10 DE MINIMIS TRANSFER OF PROPERTY ALLOWANCE An annual transfer amount is allowed that will not invoke a transfer penalty and will be excluded from the total uncompensated value of an improper transfer under the circumstances explained below. This is referred to as the de minimis transfer allowance; the annual amount allowed per year is $1200. The de minimis transfer allowance is applicable if the gift is made by the applicant/recipient, during the review period directly to: • A family member who is related to the applicant by blood, adoption, or existing marriage, or • A nonprofit organization qualified under Section 501(c) of the Internal Revenue Code as amended, which gives the organization tax-exempt status, and the de minimis allowance is subtracted after any and all transfers have been evaluated. Up to $1200 per year is deducted from the uncompensated value of transfers that are otherwise improper. Example 1: A member residing in a nursing facility applies for Medicaid on 10-15-09 and reports the following transfers:

• $10,000 to an irrevocable funeral trust • $1,200 to the applicant’s child The purchase of the funeral trust is allowable without penalty. The gift to the child does not invoke a transfer penalty because it did not exceed the de minimis allowance and was given to a family member. No penalty is imposed. The de minimis allowance is an annual total for all otherwise improper transfers, regardless of how many individuals received gifts from the member.

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Page 78

Official source

This provision applies to individuals who apply for Medicaid on and after November 1, 2009, and for these individuals, any subsequent redeterminations that occur as the result of seeking LTC services as well as the annual scheduled redeterminations. 2640.10.15.10 DE MINIMIS TRANSFER OF PROPERTY ALLOWANCE An annual transfer amount is allowed that will not invoke a transfer penalty and will be excluded from the total uncompensated value of an improper transfer under the circumstances explained below. This is referred to as the de minimis transfer allowance; the annual amount allowed per year is $1200. The de minimis transfer allowance is applicable if the gift is made by the applicant/recipient, during the review period directly to: • A family member who is related to the applicant by blood, adoption, or existing marriage, or • A nonprofit organization qualified under Section 501(c) of the Internal Revenue Code as amended, which gives the organization tax-exempt status, and the de minimis allowance is subtracted after any and all transfers have been evaluated. Up to $1200 per year is deducted from the uncompensated value of transfers that are otherwise improper. Example 1: A member residing in a nursing facility applies for Medicaid on 10-15-09 and reports the following transfers:

• $10,000 to an irrevocable funeral trust • $1,200 to the applicant’s child The purchase of the funeral trust is allowable without penalty. The gift to the child does not invoke a transfer penalty because it did not exceed the de minimis allowance and was given to a family member. No penalty is imposed. The de minimis allowance is an annual total for all otherwise improper transfers, regardless of how many individuals received gifts from the member.