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The transferred resources are considered inaccessible once legal recourse is initiated (e.g., court action is filed) and remain inaccessible while legal recourse is diligently pursued to a conclusion.

RECOVERED ASSETS: If transferred resources are recovered in whole or in part, the recovered assets are treated as if they were never transferred when determining eligibility.

DETERMINING UNCOMPENSATED VALUE: An uncompensated asset transfer occurs when the owner receives less than the asset’s FMV on the transfer date. Compensation means money, real or personal property, food, shelter, or services: Compensation examples · The client or spouse receives at or after the transfer in exchange for the resource IF compensation was provided under a legally enforceable agreement in effect when the transfer occurred, OR · Received before the transfer occurred and provided under a legally enforceable agreement in which the client agreed to transfer the asset in exchange for the goods or services received. · Compensation may also include assumption of the client’s legal debt in exchange for the asset. Compensation does not include services or gifts previously provided to the client out of love or concern with no expectation or promise of payment.

Determine the value of future compensation (services, food, or shelter) based on the compensation’s FMV for the time period the client is reasonably expected to receive the support or maintenance beginning with either the date of transfer or date of contract, whichever is earlier (See ABD 016 Life Expectancy Table).

Services provided through a personal care contract cannot duplicate services that are being provided or are available as part of another existing contract, or encompassed by the package of services provided by a nursing home, assisted living facility, or adult foster home in which the individual is residing. For example, nursing homes provide dietary services, and, when necessary, assistance in eating; a separate contract paying a third party to also provide assistance in eating is not a valid personal care contract expense. Contracts and payments for duplicative services are considered uncompensated asset transfers.

Personal care contracts drafted after 05/31/2022 must include the following: 1. Agreement/contract must be in writing prior to the delivery of the personal care services