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• Purpose for transferring the property • Attempts to dispose of the property at fair market value • Reason for accepting less than fair market value for the property Means of or plans for supporting himself after the transfer • Relationship (for example: familial or business) to the person to whom the property was transferred. In addition, the individual must submit any and all pertinent documentary evidence such as legal documents, realtor listing agreements, relevant correspondence, and so forth, to the DFR. An allegation by the individual that the property transfer was done to avoid Medicaid estate recovery will not be accepted as a satisfactory showing that the property was transferred exclusively for a purpose other than to become eligible for Medicaid. Clearly, an individual who makes this claim has the intention of becoming eligible for Medicaid, or estate recovery would not even be an issue. Furthermore, a simple statement made by or on behalf of a recipient who has transferred property, that the transfer did not affect eligibility and is therefore allowable, does not constitute a satisfactory showing. The individual may be trying to protect all future eligibility. Again, the avoidance of estate recovery may be the intent and will not suffice. If the DFR finds the individual has made a satisfactory showing that the resource was not transferred to attain Medicaid eligibility, or that they intended to transfer it for fair market value, a penalty period will not be established. 2640.10.35 DETERMINING THE TRANSFER PENALTY PERIOD BEGIN DATE An unsuccessful rebuttal of the presumption of intent combined with a determination of inadequate consideration will result in the DFR invoking a penalty period. During a transfer of property penalty period, the recipient is ineligible for nursing facility services and home and community-based services. For transfers on and after 8-11-93 but prior to July 1, 2003, the penalty period will begin with the month of the transfer (if that month is not a part of another penalty period) and continues for the full number of penalty months determined by dividing the uncompensated value by the nursing facility private pay rate in effect as of the application month. (Refer to Section 3006.00.00 for the private pay rate). The process of rounding down the number of penalty months is no longer valid policy, and the procedure is now prohibited. The penalty start date for transfers of property will begin on the later of: • The date on which the individual would be otherwise eligible for Long Term Care Services under Medicaid based on an approved application were it not for the imposition of the penalty period, or • The first day of a month during which assets have been transferred for less than fair market value (FMV), and