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COMAR 10.09.24.01-.16 1684 State of Maryland Medical Assistance Manual Revised July 2012

the beneficiary, assuming the full exercise of discretion by the trustee or trustees for the distribution of the maximum amount to the beneficiary. (2) Section J-1 of this regulation shall apply whether or not the: (a) Medicaid qualifying trust is irrevocable or has been established for purposes other than to enable a person to qualify for Medical Assistance; or (b) Discretion described under §J-1 of this regulation is actually exercised. (3) If the beneficiary of a trust is a mentally retarded person who resides in an intermediate care facility for the mentally retarded, the trust may not be considered a Medicaid qualifying trust if it was established before April 17, 1986 and is solely for the benefit of the mentally retarded person. (4) The Department may waive the application of §J-1 of this regulation if the Department determines that to do so would work an undue hardship. K. Disposal of Resources for Less than Fair Market Value. (1) In determining eligibility for Medical Assistance for any period under consideration beginning before October 1, 1993, an institutionalized individual shall be determined ineligible for nursing facility services, for a level of care in a medical institution equivalent to that of nursing facility services, and for waiver services under COMAR 10.09.27 and 10.09.31 if the individual or the individual's spouse: (a) Disposes of a resource for less than fair market value at any time during or after the 30-month period immediately before or after the date the person becomes an institutionalized person if the person is entitled to Medical Assistance on that date; or (b) If not entitled to Medical Assistance on that date, then on the date the person applies for Medical Assistance while an institutionalized person. (2) If a person disposes of a resource for less than fair market value while in a period of ineligibility for an earlier disposal, the later disposal is considered a part of the earlier disposal for purposes of computing the total period of ineligibility. (3) The period of ineligibility shall begin with the month in which the resource was transferred and the number of months in the period shall be equal to the lesser of: (a) 30 months; or (b) The total uncompensated value of the transferred resource, divided by the average cost, to a private patient at the time of application, of nursing facility services in the state in which the person is institutionalized. (4) An institutionalized person may not be determined ineligible for Medical Assistance under §K(1) of this regulation if the resource transferred was a home and title to the home was transferred to: