Page 16

16

A. Compensated Transfer

1. A transfer is compensated when the asset is transferred or exchanged in return for money or any other tangible object, service, or benefit that is equal to or greater than the equity of the transferred asset.

2. Some transfers that are adequately compensated may still be non-allowable transfers because of other requirements (e.g. annuities, purchases of life estates, etc.) and should be evaluated for possible sanctions. B. Transfer of the Homesite 1. When evaluating for transfers, the homesite is defined as any property in which the a/b or financially responsible person has an ownership interest; and

a. Is used as their principal place of residence or the principal place of residence of their spouse or a dependent relative, or

b. Was used as the principal place of residence by the a/b, their spouse or dependent relative during the lookback period or

c. They intend to return to it or intended to return to it during the lookback period.

Once ownership is established in a new principal place of residence, even if it occurs on or after the lookback date, the former principal place of residence becomes non-homesite property.

Refer to MA-2230, Financial Resources, for the definition of the homesite and contiguous property and for policy used to determine asset eligibility. 2. Transfer of the homesite without receiving compensation of equivalent value is an allowable transfer only when it is transferred to one of the following:

a. Legal spouse, or b. Natural, adopted, or stepchild under age 21 at time of transfer, or c. Blind/disabled (determined by SSA) child of any age, or d. Sibling who:

(1) Is a co-owner of the home and

(2) Has been residing in the home for a period of at least one year immediately before the a/b entered a nursing facility or requests CAP or PACE.

e. Natural, adopted, or stepchild(ren) age 21 or over who: