5723.3 Transfer of Property for Purposes other than to Qualify for Medicaid

A penalty period is not considered if a satisfactory showing is made that the transfer occurred exclusively for a purpose other than to qualify for medical assistance.

Any transfer of property for less than fair market value within the appropriate look-back period is presumed to have been made for the purpose of establishing or maintaining Medicaid eligibility. The burden of proof is on the individual to disprove the presumption the transfer was made exclusively for another purpose. Clear and convincing evidence must be provided to establish the claim. The individual must provide a chronological record of the facts related to each transfer within the appropriate look-back period which includes the following information:

the specific purpose for transferring the property.

any attempts to dispose of the property for fair market value.

the reason(s) for accepting less than fair market value.

how the individual planned for self-support after the transfer.

the individual’s relationship to the transferee.

the individual’s general health condition at the time of the transfer.

Clear and Convincing Evidence - The agency shall evaluate the information provided to determine if clear and convincing evidence exists to substantiate the purpose of the transfer. The following factors are considered: The transfer was ordered by a court and neither the individual nor spouse nor anyone acting in their legal authority or direction took any action to petition the court to order the transfer. unexpected events that have altered the circumstances present at the time of transfer which occurred between the transfer and the application, including: a traumatic onset of disability or blindness. the diagnosis of a previously undetected disabling condition; or an unanticipated loss of other income or resources completely outside of the control of the individual or spouse which would have otherwise precluded medical eligibility. Transfers to family members, friends and acquaintances are presumed to be for the purpose of becoming eligible unless evidence is presented that the transfer occurred exclusively for one of the following reasons: the property transfer was necessary in relation to a change in location or maintenance of a satisfactory standard of living. the property transfer was related to payment of a legitimate debt created by a contract entered into prior to the delivery of services or materials and services or goods were provided at fair market value. the salvaging of an investment before foreclosure or failure of a business or a business investment to assist the person to be partially or wholly self-supporting. Gifts and other charitable contributions are presumed to be given for the purpose of becoming eligible for medical assistance. The following exceptions apply when considering gifts: When the total amount of all gifts given totals less than $50.00 in a given month. For applicants only, gifts consistent with an established, well-documented, history of charitable contributions occurring over a number of years prior to the transfer. For example, an individual who has regularly given $100/month to her church for 25 years or an annual contribution to the Salvation Army at Christmas. The longer the period between the transfer and the application for assistance, the more weight is given to the individual's claim. Previous contact with the agency by the individual, spouse, responsible person, or others concerning eligibility for medical assistance and/or consultation with or hiring of an attorney for estate planning purposes are strong indicators that the transfer was not exclusively for another reason other than to qualify for medical assistance.