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c. The owner’s permanently blind or disabled (per SSA criteria) adult child; d. The owner’s child (of any age) who: i. Lived with the client for two years immediately prior to the client entering the nursing home; AND ii. Provided care that allowed the client to remain at home (doctor’s statement must confirm that care provided delayed nursing home entry) e. The owner’s sibling who: i. Has equity interest in the home; AND ii. Continually lived in the home for at least one year prior to the client entering the nursing home. 5. The asset was transferred solely for a purpose other than qualifying for Medicaid, such as to satisfy a legally enforceable debt. The timing of debt payments must be considered. If an old debt that allegedly has been outstanding for years is suddenly remembered, but there is no convincing evidence that the client acknowledged or attempted to satisfy it or that the person(s) owed the debt previously attempted to collect it, debt validity and whether the debt is legally enforceable may be questionable. 6. The assets were transferred into the individual’s qualifying Special Needs Trust (see CMA 402-3 Trust Funds ). 7. The assets were transferred to the individual’s pooled trust (see CMA 402-3 Trust Funds) before the individual reached age 65. 8. Eligibility denial will cause the client undue hardship.

UNDUE HARDSHIP: An undue hardship exists only when: 1. The application of an asset transfer penalty would deprive the individual of medical care such that the individual’s health or life would be endangered; or of food, clothing, shelter, or other necessities of life; OR 2. Fraud, misrepresentation, or coercion against the client and/or their spouse resulted in the transfer; AND a. The client and/or their spouse have explored and pursued all reasonable legal recourse to reacquire the asset or its value.

Legal recourse includes, but is not necessarily limited to, filing a civil court action, and once filed, diligently pursuing the civil action to its conclusion. Mediation may be a reasonable step in resolving a legal claim. If the proven costs of legal pursuit exceed the transferred asset’s value, it is not considered reasonable legal recourse. Due to the potential availability of pro bono or reduced-fee legal services, costs of legal pursuit cannot be based solely on attorneys’ fees. NOTE: Filing criminal charges against the person who received the assets through fraud, misrepresentation or coercion or filing a police report does not fully satisfy the requirement to pursue all legal recourse.